[News] Geopolitical Rush Orders Drive TSMC Toward a Record-Breaking Q1 Off-Season in 2025

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According to a report by Economic Daily News, TSMC is riding the wave of AI and high-performance computing (HPC) applications, with its USD-denominated revenue expected to reach record highs in Q4 2024 and throughout the year. Recently, rush orders have surged as customers anticipate tighter U.S. regulations under Trump administration. This demand is set to sustain TSMC’s traditionally slow Q1 operations, with the company likely delivering sequential growth and potentially setting a new quarterly revenue record — making it the most robust “off-season” in the company’s history.

In response to inquiries, TSMC’s Public Relations Department told Economic Daily News that the company has not yet disclosed its 2025 performance outlook or capital expenditure plans. Investors should refer to information shared during the October earnings call for the latest financial updates.

The report also highlights the significant impact of geopolitical developments on the semiconductor industry, particularly on HPC-related orders. For example, TSMC’s revenue from Chinese customers saw a notable increase in the first half of 2024. In Q2, revenue from Chinese clients surged to 16% of total revenue, based on the location of customers’ headquarters. Market speculation attributed this to urgent orders driven by geopolitical concerns, though TSMC only acknowledged that the increase was related to HPC applications without further elaboration.

With Trump’s potential return to the White House and new U.S. export control measures already brewing, TSMC is reportedly seeing a renewed wave of rush orders tied to geopolitical issues. These orders, particularly from U.S. clients preparing for potential regulatory adjustments, are expected to fuel TSMC’s operations in Q1 2025, traditionally a slow season.

TSMC has recently revamped its corporate strategy by elevating its Corporate Strategy Office and assembling a new leadership team. Rick Cassidy, the Senior Vice President previously overseeing the Strategy Office, is now joined by seasoned executives Wei Jen Lo, Senior Vice President of R&D, and J.K. Lin, Chief Information Security Officer.

(Photo credit: TSMC)