TSMC’s Q4 results exceeded expectations, fueled by AI chip demand, prompting ETF investment opportunities.

Taipei: Taiwan Semiconductor Manufacturing Company (TSMC) just reported some impressive fourth-quarter results for 2024. They beat expectations on both revenue and earnings, thanks to a surge in demand for advanced chips, especially for AI applications. The company is feeling pretty optimistic about the future of AI demand too.
If you’re looking to invest in TSMC’s growth, there are some ETFs that focus heavily on this leading semiconductor manufacturer. Some of the top ones include SP Funds S&P World ex-US ETF, SP Funds S&P Global Technology ETF, VanEck Vectors Semiconductor ETF, Matthews Emerging Markets ex-China Active ETF, and Global X Emerging Markets ex-China ETF.
In terms of numbers, TSMC reported earnings of $2.24 per ADR, which was better than the expected $2.16 and a solid 57% increase from last year. Their revenue also jumped 37% year-over-year to $26.9 billion, surpassing the consensus estimate of $26.38 billion. A big part of this growth came from their high-performance computing division, which includes AI and 5G applications, making up 53% of their total revenue.
TSMC is riding the wave of the global AI boom, making chips for major players like Apple and NVIDIA. They’re seeing a lot of success with their advanced 3-nanometer and 5-nanometer technologies. In fact, the 5-nanometer wafers accounted for 57% of their revenue, while the 3-nanometer wafers brought in 26% and the 7-nanometer wafers made up 14%.
Looking ahead, TSMC’s management believes that AI accelerators will be the main driver of growth in their high-performance computing platform. They expect revenues for the first quarter of 2025 to be between $25 billion and $25.8 billion, which is above the Zacks Consensus Estimate of $23.92 billion. They’re also projecting mid-20s percentage growth for 2025.
So, if you’re interested in ETFs, let’s break down a few options. The SP Funds S&P World ex-US ETF tracks a mix of stocks from developed and emerging markets, excluding the U.S., and has TSMC as its top holding at 17.5%. It’s got about $28.7 million in assets and charges 55 basis points in fees.
Then there’s the SP Funds S&P Global Technology ETF, which focuses on large and mid-cap tech stocks worldwide. TSMC also leads this ETF with a 17% share. It has around $45.1 million in assets and charges the same fee as the previous ETF.
The VanEck Vectors Semiconductor ETF is another great option, offering exposure to semiconductor companies. TSMC is the second-largest holding here at 12.6%. This ETF has $23.1 billion in assets and a lower fee of 35 basis points.
For those looking at emerging markets, the Matthews Emerging Markets ex-China Active ETF has TSMC as its top holding at 15.2%. It has $37.6 million in assets and charges 79 basis points in fees.
Lastly, the Global X Emerging Markets ex-China ETF also features TSMC prominently, holding 10.5% of its assets. It has $24.1 million in assets and charges 75 basis points in fees.
So, there you have it! TSMC is definitely a company to watch, especially with the growing demand for AI technology. If you’re considering investing, these ETFs could be a good way to get in on the action.