[News] TSMC Expects Q1 Revenue at Lower End of Guidance due to Earthquake, with NT$5.3 billion Losses

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Following the 6.4 earthquake on January 21, TSMC quickly restored operations and resumed normal production within a few days, though the full impact has not been disclosed. Today, the Taiwanese foundry giant announced in a press release that due to a number of wafers in process being affected and scrapped, its Q1 2025 revenue forecast is now expected to be closer to the lower end of the guidance range of US$25 billion to US$25.8 billion.

Based on a preliminary assessment, TSMC estimated related earthquake losses to be approximately NT$5.3 billion (roughly USD 161.4 million), net of insurance claim, and will recognize it in the first quarter of 2025.

Despite this, TSMC stated that it would be able to maintain first quarter gross profit margin to be between 57% and 59% and operating profit margin is expected to be between 46.5% and 48.5%. The company is making every effort to recover the lost production, and there is no change to its full-year outlook, as per the press release.

There was no structural damage to TSMC’s fabs, and the water supply, power, workplace safety systems, and operations are functioning normally, according to TSMC’s statement.

As reported by TechNews, Chairman and CEO C.C. Wei underscored that AI demand is expected to remain strong through 2025, positioning it as a key revenue driver for TSMC in the years ahead.

Looking forward to 2025, TSMC expects the semiconductor industry to grow by approximately 10%, supported by inventory levels returning to health, robust AI growth, and moderate expansion in other sectors. Notably, TSMC projects its own growth to surpass 20%, reaching the mid-20% range, according to TechNews.

TSMC also announced its net revenue for January 2025 today: On a consolidated basis, revenue for January 2025 was approximately NT$293.29 billion (roughly USD 8.9 billion), an increase of 5.4 percent from December 2024 and an increase of 35.9 percent from January 2024.

Read more

• [News] 6.4 Magnitude Earthquake Hits Southern Taiwan, TSMC Evacuates Factories, Impact Under Review
• [News] TSMC Reportedly Expects Fab 18 Recovery by Jan. 23, Fab 14 Timeline Uncertain After 6.4 Earthquake

(Photo crredit: TSMC)