TSMC Plans Record Capital Spending on Strong AI Demand
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Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) plans to raise its capital spending to a record high of up to $56 billion for 2026, betting that global demand for artificial intelligence (AI) will stay strong.
Chairman and CEO C.C. Wei told analysts on a post-earnings conference call Thursday that the aggressive investment plan is underpinned by robust demand as the use of AI models in consumer and enterprise facing applications as well as the need for AI sovereignty grows. Wei also said that he had spent the past few months communicating with his major cloud service clients to confirm their demand is real.
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- TSMC plans record capital spending up to $56 billion in 2026, driven by strong AI demand.
- In Q4 2025, revenue was $33.2 billion and net profit $16 billion, with HPC making up 55% of revenue.
- 2-nanometer tech began mass production in late 2025; 2026 Q1 revenue forecast is $34.6–$35.8 billion.
- Taiwan Semiconductor Manufacturing Co. Ltd.
- Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) is increasing its capital spending to a record $56 billion by 2026, driven by strong global demand for AI. AI chip revenue made up a high-teens percentage of their total sales in 2025. Their 2-nanometer technology entered mass production in late 2025 in Taiwan, and their Arizona plant produces chips of comparable quality. In Q4 2025, TSMC reported robust revenue and net profit growth, with high-performance computing as its main revenue driver.
- TSMC
- TSMC (Taiwan Semiconductor Manufacturing Co. Ltd.) plans to significantly increase capital spending to $56 billion by 2026, driven by strong global AI demand. In 2025, AI chip revenue was a high-teens percentage of total sales. Their advanced 2-nanometer technology entered mass production in late 2025 in Taiwan. TSMC's Arizona plant produces chips of comparable quality to Taiwan. They reported strong Q4 2025 revenues and predict continued growth for Q1 2026.
- 2025：
- TSMC’s revenue from AI chips accounted for a high-teens percentage of total sales.
- 2025：
- The quality of chips made at TSMC's Arizona plant was reported to be as good as those made in Taiwan.
- 2025：
- High-performance computing (HPC) business accounted for 55% of TSMC's quarterly total revenue, while the smartphone business made up 32%.
- Fourth quarter of 2025：
- TSMC's most advanced 2-nanometer technology began mass production at its facilities in Hsinchu and Kaohsiung, Taiwan.
- Fourth quarter of 2025：
- TSMC reported revenue of NT$1.05 trillion ($33.2 billion) and net profit of NT$505.7 billion, up 20.5% and 35% year-on-year, respectively.
- January 15, 2026：
- TSMC Chairman and CEO C.C. Wei announced on a post-earnings conference call the plan to raise capital spending to a record high of up to $56 billion for 2026.
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