What drove TSM's earnings growth in 2024?

Taiwan Semiconductor Manufacturing (TSM) experienced earnings growth in 2024 primarily driven by several key factors:

1. **AI and High-Performance Computing (HPC) Demand**: TSM's Q2 and Q3 results were particularly strong, driven by the increasing demand for AI and HPC. The company's high-performance computing division saw a 28% sequential revenue increase, and the 3-nanometer process technology gained significant traction.
2. **Global Semiconductor Industry Growth**: The global semiconductor industry is growing significantly due to the extensive chip application across various end-use industries and technological innovations like AI, ML, and IoT. TSMC's dominant position in the semiconductor industry has enabled it to capitalize on this growth.
3. **Advanced Technology Adoption**: The adoption of advanced technologies such as the 3-nanometer process contributed significantly to TSM's revenue growth. 3-nanometer-related revenues soared from 0% of total sales in Q1 of last year to 15% in the current quarter.
4. **Strategic Expansion and Capacity Increases**: TSM's plans to expand its global production and increase its chip-on-wafer-on-substrate (CoWoS) production capacity at a CAGR of over 60% until at least 2026 are expected to support continued growth.
5. **Strong Client Relationships**: TSM's ties with major clients such as Apple and Nvidia, along with its efforts to meet the rising AI demand, have been encouraging for maintaining steady revenue.

In summary, TSM's earnings growth in 2024 was driven by the surge in demand for its advanced chips, particularly in AI and HPC, combined with strategic expansions and strong relationships with key clients.