Taiwan Semiconductor Manufacturing Company
Semiconductor ManufacturingFounded 1987- Updated July 2025
Reviewed by Swet Parvadiya
Last reviewed: July 2025
CorpDigest
Taiwan Semiconductor Manufacturing Company
Financial Performance
Last reviewed: July 2025 · By Swet Parvadiya
Revenue
$90B
Market Cap
$900.0B
Net Income
$35.0B
Employees
73,000
TSMC earned $35 billion in net income on $90 billion in fiscal 2024 revenue — a 38.9% net margin that is extraordinary for any manufacturing company and that reflects genuine pricing power rather than accounting artifact. Gross margins ran at 53-54% in the second half of 2024. A company with $90 billion in revenue and a 39% net margin is generating earnings that most software companies with ten times the revenue cannot match. Revenue growth has been dramatic: $57.7 billion in fiscal 2021, $75.9 billion in fiscal 2022, a decline to $67.6 billion in fiscal 2023 as semiconductor demand corrected from pandemic-era overordering, and then $90 billion in fiscal 2024 as AI chip demand overwhelmed the correction. The $22.4 billion single-year increase from fiscal 2023 to fiscal 2024 is larger than the total annual revenue of most semiconductor companies. The Arizona fab investment has expanded from the initial $12 billion announcement to over $65 billion — the largest single manufacturing investment in American history. That capital commitment has been driven by US government incentives under the CHIPS Act and by customer pressure from Apple, NVIDIA, and AMD to maintain a manufacturing presence in the United States as a hedge against Taiwan-related supply disruption. The per-wafer cost at Arizona fabs will initially be higher than Taiwan operations, but TSMC has demonstrated that it can close cost gaps over time as yields improve and operations mature. The $900 billion market capitalization places TSMC at ten times fiscal 2024 revenue. That valuation has a specific basis: the company manufactures something that no other entity can manufacture at comparable volume, quality, or process sophistication, and demand for that something is growing faster than TSMC can build capacity. The geopolitical discount — which markets apply to the Taiwan concentration risk — is offset by the AI demand premium, producing a net valuation that reflects both the opportunity and the risk simultaneously.
Revenue Trend Analysis
YoY Change
+33.1%
4-Year CAGR
+18.6%
Peak Year
2024
Trend
Consistent Growth
Taiwan Semiconductor Manufacturing Company has reported revenue across 5 fiscal years, compounding at +18.6% annually over 4 years. The most recent year saw a 33.1% increase versus the prior year. Revenue peaked in 2024 at $90.0B. Out of 4 reported periods, 3 showed growth and 1 showed a decline.
| Fiscal Year | Revenue | Net Income | YoY Change |
|---|---|---|---|
| FY2024 | $90.0B | $35.0B | +33.1% |
| FY2023 | $67.6B | — | -10.9% |
| FY2022 | $75.9B | — | +31.5% |
| FY2021 | $57.7B | — | +26.8% |
| FY2020 | $45.5B | — | — |
Source: SEC EDGAR filings, annual earnings releases, and verified financial disclosures.
Click any row to see year details.
TSMC reported full-year 2024 revenue of approximately NT$2.89 trillion, equivalent to roughly $90 billion, a record high and an increase of about 34 percent year over year in U.S. dollar terms. Growth was driven by the ramp of 3-nanometer production, surging demand for AI accelerators, particularly for Nvidia and AMD, and continued strength in high-performance computing. Net income for 2024 was approximately NT$1.17 trillion, or roughly $36 billion, representing year-over-year growth of more than 35 percent. Gross margin reached the mid-to-high 50s percent range and operating margin reached approximately 45 percent, reflecting strong utilization, favorable mix toward leading-edge nodes, and pricing power. Free cash flow remained robust despite capex of approximately $30 billion. TSMC also paid quarterly dividends totaling several billion dollars. The company has guided to capex of about $38 to $42 billion in 2025 with continued revenue growth driven by AI demand and the ramp of 2-nanometer production scheduled for the second half of 2025.
TSMC's market capitalization stands at approximately $900 billion to $1 trillion in late 2024, making it one of the most valuable companies in the world and the most valuable semiconductor company by market cap, periodically trading above the $1 trillion threshold. The company is dual-listed. Its primary listing is on the Taiwan Stock Exchange under ticker 2330, and American Depositary Receipts trade on the New York Stock Exchange under ticker TSM. The ADR represents five ordinary shares. TSMC was listed in Taiwan in 1994 and its ADRs began trading in New York in October 1997. The stock has been one of the great long-term compounders in technology, with significant rallies in 2020 and 2021 during the pandemic-era chip shortage and again from late 2023 through 2024 as AI demand drove a surge in advanced node and CoWoS bookings. TSMC has paid steadily rising dividends since the early 2000s and is a core holding for global institutional investors.
TSMC is one of the largest capital spenders in the global economy, investing tens of billions of dollars per year to build new fabs, install lithography equipment, and develop advanced packaging capacity. Capex peaked at roughly $36 billion in 2022 and 2023 as TSMC accelerated construction of 3-nanometer capacity, the Arizona Fab 21 phases, the Kumamoto JASM joint venture, and the European ESMC project. Reported 2024 capex was approximately $30 billion, and management has guided to 2025 capex in the range of $38 to $42 billion, reflecting the ramp of 2-nanometer production and continued advanced packaging expansion. A single leading-edge fab costs roughly $20 billion or more to build and equip, and TSMC operates multiple such fabs simultaneously. ASML extreme ultraviolet lithography tools account for a meaningful share of capex, with prices exceeding $150 million each for current tools and reaching roughly $300 million for next-generation High-NA EUV systems. The capex intensity, around 35 to 40 percent of revenue, is a structural feature of leading-edge foundry economics.
TSMC is one of the most profitable manufacturing companies in the world, with structurally higher margins than other foundries and most integrated device manufacturers. Gross margin has historically run in the 50 to 55 percent range and has expanded into the mid-to-high 50s percent in 2024 as 3-nanometer ramps and AI-driven pricing strengthens. Operating margin is in the mid-40s percent range and net income margin is roughly 40 percent. Return on equity has consistently exceeded 25 percent. Among foundries, Samsung Foundry's profitability lags meaningfully, and GlobalFoundries, UMC, and SMIC operate at gross margins typically in the 20s to 30s percent. TSMC's profitability stems from its dominant share at leading-edge nodes, where pricing power is greatest, plus operating leverage on a roughly $30 billion to $40 billion annual capex base. Operating expenses are tightly managed, with R&D running at 7 to 8 percent of revenue and SG&A near 3 percent, giving TSMC operating margins well above semiconductor industry averages.
Using these figures? Please credit CorpDigest with a link.
CorpDigest. "Taiwan Semiconductor Manufacturing Company Revenue & Financials." CorpDigest, https://corpdigest.com/company/tsmc/financials.<div style="font-family:system-ui,sans-serif;font-size:14px;line-height:1.5;border:1px solid #e2e8f0;border-radius:8px;padding:12px 16px;max-width:520px"><strong>Taiwan Semiconductor Manufacturing Company reported $90B in revenue (FY2024).</strong><br>Source: <a href="https://corpdigest.com/company/tsmc/financials" target="_blank" rel="noopener">CorpDigest — Taiwan Semiconductor Manufacturing Company financials</a></div>