How did TSMC's wafer project contribute to 2024 revenue?

TSMC's wafer project significantly contributed to the company's 2024 revenue through robust demand for advanced technologies in AI and smartphone applications. Here's a detailed analysis: 1. **3nm and 5nm Technology Demand**: The growth in revenue can be attributed to high demand for 3nm and 5nm technologies, which are used in smartphones and AI applications. In Q3 2024, 3nm technology contributed to 9% of total wafer revenue, while 5nm technology accounted for 37%. The advanced technologies, including 7nm and more advanced nodes, constituted nearly 69% of wafer revenue. 2. **AI Server and Smartphone Demand**: The demand for AI servers and new smartphone and PC products drove the growth in the wafer foundry market, which TSMC capitalized on effectively. The company's leadership in advanced technologies, such as 3nm and 5nm, positioned it well to meet this demand. 3. **Revenue Contribution**: TSMC's revenue increased by 16.5% year-over-year in Q1 2024, with net income and diluted EPS both increasing by 8.9%. The company reported a 12.8% sequential revenue increase to NT$23.5 billion in its Q3 2024 earnings call, driven by robust demand for advanced technologies. 4. **Market Share and Competitive Position**: TSMC maintained its leading position in the wafer foundry market with a 65% market share. The company's high-performance computing (HPC) products contributed significantly to its revenue, with HPC accounting for 51% of total revenue. 5. **Capital Expenditure and Expansion**: TSMC's capital expenditure plans for 2024 exceeded $30 billion, with a significant portion focused on advanced process technologies. The company's global expansion plans, including the establishment of new fab plants in various countries, are expected to support continued growth. In conclusion, TSMC's wafer project contributed significantly to its 2024 revenue by leveraging the strong demand for AI servers and new smartphone and PC products, coupled with its leadership in advanced semiconductor technologies.