TSMC has broken yet another record, posting revenue of 868.5 billion New Taiwan dollars ($26.3 billion) in December 2024. The figure represents a 3.8% increase from the same month in 2023. Even more impressive was that it exceeded analysts’ 850 billion New Taiwan dollars expectations for the month.
However, the icing on the cake was its annual headline, which blazed past 2.9 billion New Taiwan dollars. According to records, this represents the company’s highest-ever grossing year since it went public in 1994. The revenue figures, fuelled by the demand for AI chips, show that AI demand isn’t just hype. With a client base like Apple and Nvidia, there is a domination war ongoing in the AI market.
TSMC propelled by AI demand
The market has been awash with demand for AI-focused chips, especially GPUs produced by Nvidia. TSMC is the producer of the chips, creating the most advanced semiconductors globally. The chips are built to carry heavy AI workloads, from data centers to high-grade consumer tech. TSMC is the brain behind the creations, providing the tech to companies heading into the AI industry.
TSMC’s smartphone semiconductor market, while not as big as its AI counterpart, continues to improve and adds its share of revenue to the company. Investors have been noticing, with its Taiwan-listed shares surging by 88% in the past year.
Microsoft, on the other hand, is pumping $80 billion into new data centers this year. The company wants to provide an avenue to handle AI workloads. Another Taiwan-based firm Foxconn, also saw a huge turnover in 2024 revenue, boosted by AI.
Global AI market continues to grow
The AI market has continued to grow, ending 2024 with a return of $184 billion. The figure was a big jump from its $135 billion in 2023. The growth is more than $50 billion in the space of 12 months, signaling an increase in demand. The market has been projected to hit $826 billion by 2030, with analysts predicting an annual growth of 36.6%. AI companies were also responsible for 31% of the funding from global venture capitalists.
Generative AI has also become the hotcake of the industry, with about 51% of global companies using it for a wide range of activities. The market has been predicted to hit $1.3 trillion by the end of 2032. However, its impact on jobs cannot be overlooked, with AI predicted to create 133 million jobs globally by 2030. While there are still reservations about it replacing humans, studies have shown that AI is about transformation.
However, there is still the headache of data management for companies using AI. Complications related to data storage in places like the United States and the Eurozone present strong storage challenges. Another issue is trust, with most people having privacy issues. Aside from that, there are still security issues, biases in algorithms, and other risks associated with adopting the technology. Businesses are looking for ways to address these fears, but it is still a tough battle.