Taiwan Semiconductor Manufacturing Co’s (TSMC) profitability in the final quarter of 2024 surged on soaring demand for chips supporting AI applications, with sales in the current quarter forecast to rise as much as 37 per cent year-on-year.

Net profit in Q4 2024 rose 57 per cent to TWD374.7 billion ($11.4 billion).

On an earnings call, the company predicted Q1 2025 revenue to increase between 32.5 per cent and 36.7 per cent to $25 billion to $25.8 billion, with its gross margin expected to remain at 57 per cent to 59 per cent.

It issued a full-year capex guidance ranging from $38 billion to $42 billion, up from $29.8 billion in 2024, which was flat.

A week ago it revealed Q4 2024 revenue was up 39 per cent, with 75 per cent in North America while China and Asia Pacific each took a 9 per cent share.

High performance computing sales grew 19 per cent to account for 53 per cent of total revenue, up from 43 per cent in the same period in 2023.

Smartphone revenue grew 17 per cent, accounting for 35 per cent of the total compared with 43 per cent.

Its 3nm process technology accounted for 26 per cent of total wafer revenue, compared with 15 per cent in Q4 2023, while 5nm chips represented 34 per cent, down from 35 per cent.