TSMC's growth has slowed down due to rising competition in the AI chip market, particularly from Chinese startup DeepSeek. DeepSeek's low-cost AI models are threatening to disrupt the industry, leading to concerns about the sustainability of massive investments in AI infrastructure.
TSMC's stock price has taken a hit, falling by as much as 6.6% in Taipei trading. The company's growth is largely driven by demand for its advanced chips used in AI applications, but the rise of competitors like DeepSeek is making it challenging for TSMC to maintain its dominance.
Despite this, TSMC has reported record profits for the fourth quarter of 2024, fueled by booming demand for AI chips. The company's revenue surged to NT$868.46 billion (US$26.88 billion) in the fourth quarter, marking a 14.3% increase from the previous quarter and a 38.8% jump from the same period a year earlier.
