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TSMC Hikes 2026 Spending After AI Demand Powers Record Quarter

Surging AI orders are redirecting capacity toward data‑center chips, prompting expansion closer to key Western customers.

Overview

  • Quarterly revenue topped 1.046 trillion Taiwan dollars for the first time and net profit rose 35% to 505.7 billion TWD, beating forecasts.
  • Capital expenditure for 2026 is guided up to 1.77 trillion TWD (about $56 billion), with first‑quarter revenue forecast around 1.13 trillion TWD, up to 40% higher year on year.
  • High‑Performance Computing led growth, rising 48% year on year to 58% of sales as demand for AI accelerators from customers such as Nvidia and AMD surged.
  • TSMC is advancing overseas buildouts, including three fabs in Arizona plus an advanced‑packaging site, while a Dresden plant with European partners targets production next year.
  • Industry reporting says TSMC makes the vast majority of top‑end AI chips and notes Apple could face tighter allocations as Nvidia’s orders swell, while TSMC shares gained more than 5% after the earnings release.