TSMC, the world’s largest contract chipmaker, reported fourth-quarter revenue of T$1,046.08 billion ($33.05 billion) on Friday, according to Reuters calculations based on the company’s monthly disclosures.

The result exceeded market expectations and marked a 20.45% increase from a year earlier, driven by strong demand for chips used in artificial intelligence applications.

An LSEG SmartEstimate, compiled from 20 analysts, had forecast fourth-quarter revenue of T$1,035.913 billion ($32.73 billion).

Taiwan Semiconductor Manufacturing Co is a key supplier to major technology companies including Nvidia and Apple, whose advanced processors are increasingly used in AI data centres, smartphones and other high-performance computing applications.

The surge in AI-related investment has become a central driver of TSMC’s growth, underpinning strong order momentum and helping the company outperform analyst forecasts during the quarter.