STORY: TSMC logged record quarterly profit on Thursday (Jan.16).

With demand surging for chips used in artificial intelligence processing.

While business is booming, TSMC does face headwinds from U.S. government technology restrictions on China.

And President Biden's administration this week said it would further restrict AI chip and technology exports.

Though Taiwan and other close U.S. allies will be allowed unlimited access to U.S. AI technology, further curbs could impact demand from clients.

President-elect Donald Trump's incoming administration, which has threatened broad import tariffs, also brings much uncertainty.

TSMC's Chief Executive said on Thursday that he believes U.S. export controls on AI chips for China were a manageable issue for the company.

The world's largest contract chipmaker, whose customers include Apple and Nvidia, posted a 57% jump in net income to $11.4 billion for the quarter ending December 31st.

That was a record high for any quarter and in line with estimates.

Revenue climbed 39% from the same period a year earlier.

It expects similar revenue growth in the current quarter of about 37% to between $25-25.8 billion.

TSCMC says it maintains its bullish outlook for AI demand.

The stock closed up 3.8% on Thursday.

Last year it soared 81%.