They dropped 19% to $7.6 billion, though that still beat analyst forecasts.
The downturn came as global economic woes hit demand for chips used in everything from cars to cellphones.
But the world's largest contract chipmaker is feeling bullish about the year ahead.
It's expecting upwards of 20% revenue growth.
Much of that is tied to the artificial intelligence boom, driven by products like ChatGPT.
TSMC should stand to benefit, being a big supplier to firms including Nvidia - the U.S. chipmaker seen as the champion of AI silicon.
Over the coming year, the firm plans to press ahead with capital spending plans, including starting work on a major new plant in Germany.
However, it must also navigate U.S.-China tensions.
As the biggest maker of advance semiconductors, it could be exposed to restrictions imposed by one or both sides.
TSMC is Asia's most valuable listed company.
On Thursday its climbed over 1% ahead of the earnings report.
That gave it a market value of over $478 billion.
