Curious about TSMC net worth and how its major clients contribute to its financial success?
In 2024, Taiwan Semiconductor Manufacturing Company (TSMC) has strengthened its position, driven by partnerships with industry giants like Apple and AMD.
This article, brought to you by Ando Money, explores TSMC’s financial performance, highlighting the key elements contributing to its growth.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | TSMC |
| Full Name | Taiwan Semiconductor Manufacturing Company Limited |
| Website | https://www.tsmc.com |
| Industry | Semiconductor Manufacturing |
| Traded as | NYSE: TSM, TWSE: 2330 |
| ISIN | US8740391003 |
| Founded | 1987 |
| Founders | Morris Chang |
| Country/Territory | Taiwan |
| Headquarters | Hsinchu, Taiwan |
| Chief Executive Officer | C. C. Wei |
| Number of Employees | 72,982 |
| Market Cap | $970.47 billion |
| Total Assets | $184.13 billion |
| Total Equity | $117.58 billion |
| Revenue | $20.82 billion (Q2 2024) |
| Net Income | $7.66 billion (Q2 2024) |
What is the Net Worth/Market Cap Of TSMC in 2024?
As of 2024, TSMC holds a market cap of $970.47 billion, positioning it as one of the top global semiconductor companies.
This makes TSMC a key player in the industry, contributing significantly to technological advances through its cutting-edge chip manufacturing. Its market cap places it in the ranks of leading tech giants.
Comparing TSMC’s market value to other global entities shows its remarkable influence.
Related Competitors and Partners:
Explore more about other leading companies by checking out the most valuable brands and their financial standings on Ando Money.
TSMC Financial Performance Overview
Key Revenue Streams for TSMC in 2024
TSMC’s revenue is primarily driven by its advanced semiconductor technologies. In Q2 2024, the company generated $20.82 billion, with a significant portion coming from its 3nm and 5nm chip manufacturing processes.
These advanced technologies contributed 67% of total wafer revenue, cementing TSMC’s leadership in the semiconductor industry.
The growing demand for AI-related technologies and smartphones has also significantly boosted its revenues, especially from clients like Apple and AMD.
Major Clients and Their Role
TSMC’s relationship with Apple, AMD, and Qualcomm has been pivotal in driving its financial performance.
These tech giants rely heavily on TSMC’s cutting-edge chip technology to power their products.
For instance, Apple’s reliance on TSMC’s 3nm process for its latest iPhones showcases how integral TSMC is to their supply chain.
The revenue generated from these clients plays a crucial role in TSMC’s net income of $7.66 billion.
Advanced Technology Contributions
TSMC’s 3nm and 5nm technologies are at the forefront of its revenue growth, accounting for 15% and 35% of wafer revenue respectively.
These advanced processes enable higher performance and energy efficiency, making them highly sought after by companies focused on AI, smartphones, and high-performance computing.
With 67% of total wafer revenue coming from 7nm and more advanced technologies, TSMC’s financial success is closely tied to its technological advancements.
Geographic Revenue Distribution
TSMC’s operations are global, but its revenue is heavily concentrated in regions like North America and Asia.
North America, particularly through partnerships with companies like Apple and Nvidia, contributes a substantial portion of TSMC’s revenue.
Asia also remains a key market due to growing demand in the semiconductor sector, where TSMC’s presence dominates.
Operational Efficiency and Profit Margins
With a gross margin of 53.2% and an operating margin of 42.5% in Q2 2024, TSMC demonstrates strong operational efficiency.
This efficiency stems from its ability to scale advanced manufacturing processes and maintain high production yields.
TSMC’s operational strategy has allowed it to maintain these margins, even amid fluctuating global market conditions.
Research and Development Expenses Impact
In 2024, TSMC continued to invest heavily in research and development, with R&D expenses of NT$48.06 billion.
These investments are essential for maintaining its leadership in semiconductor technology.
By focusing on process development and advanced technology, TSMC ensures its future competitiveness and ability to meet evolving client demands.
Strategic Partnerships and Financial Outcomes
Partnerships with companies like Nvidia and ASML have been crucial for TSMC’s growth.
These collaborations allow TSMC to leverage new technologies and expand its production capabilities.
The partnership with ASML, for example, has enabled TSMC to integrate extreme ultraviolet (EUV) lithography into its manufacturing process, ensuring that it remains at the forefront of the semiconductor industry.
Financial Performance in a Competitive Market
TSMC competes with industry giants like Samsung and Intel, yet continues to outpace them in terms of technology and profitability.
With a net profit margin of 36.8%, TSMC has consistently shown resilience in an intensely competitive market.
Its ability to capture market share from its rivals highlights the effectiveness of its strategic decisions.
Future Financial Outlook and Revenue Projections
Looking ahead to Q3 2024, TSMC projects revenues between $22.4 billion and $23.2 billion.
This projection is fueled by increasing demand for 3nm and AI-related technologies, which are expected to remain strong revenue drivers for the company.
TSMC’s focus on innovation and expanding its client base sets it on a trajectory for continued growth in the coming years.
FAQs About TSMC
What Technologies Contribute the Most to TSMC’s Revenue?
Its 3nm and 5nm chip technologies account for a significant portion of its revenue, making up 67% of total wafer revenue.
How Does TSMC’s Revenue Compare Year-over-Year?
In Q2 2024, its revenue increased by 40.1% compared to the same period in 2023, showing substantial growth driven by new technologies and client demand.
What Are TSMC’s Key Regions for Revenue?
North America and Asia are TSMC’s primary revenue-generating regions, with major clients like Apple and Qualcomm headquartered in these areas.
How Does TSMC Maintain High Profit Margins?
It achieves high profit margins through its operational efficiency, cutting-edge technology, and strong relationships with industry leaders like Apple and AMD.
Conclusion
At Ando Money, we aim to provide readers with up-to-date and in-depth financial analyses.
For more on TSMC and other industry giants, leave your comments, share this article, or explore more content on our website.
