TSMC Signals Continued Growth with Massive AI Investments
Q3 Results: TSMC's quarterly profit increased 35% and revenue rose 21%, driven by strong AI demand. The company plans to increase capital spending by 40% for 2026, pushing its shares to record highs.
TSMC, a Taiwan-based firm that is a leader in making chips globally, has registered strong performance in its quarterly results, which is attributed to strong demand for AI. The firm posted a net profit of 506 billion New Taiwan dollars ($16 billion) in the fourth quarter, which is a 35% jump from last year. This is also above market estimates.
TSMC reported that its revenue for the same quarter increased 21% year-on-year to 1.046 trillion New Taiwan dollars (approximately $33 billion). TSMC, which supplies chips to tech giants like Nvidia and Apple, is directly benefiting from strong demand for high-end processors equipped with AI.
Despite the strong business performance, the company has also aggressively increased its investment plans. TSMC announced that it aims to boost its capital expenditures to between 52 billion and 56 billion US dollars in 2026, a 40% increase over last year’s 40 billion US dollars. “Our investment will continue to be strong over the next three years,” Wendell Huang, Chief Financial Officer of TSMC, said during a conference call. “Demand for advanced semiconductor technologies will continue to be strong.”
Want to get your story featured as above? click here!
Want to get your story featured as above? click here!
TSMC is also dominating the stock market. The company's Taiwan-listed shares have risen more than 8% since the beginning of the year and reached a record high this month. With a market cap of approximately $1.4 trillion, TSMC has become Asia's most valuable company.
Globally, the competition for investment in AI infrastructure is intensifying. Companies like Microsoft, Meta, and Alphabet are also spending heavily on AI. However, some analysts see this as a potential AI bubble, leading to occasional sell-offs in tech stocks.
TSMC has also accelerated its expansion in the United States. The company has pledged to invest approximately $165 billion in the US and has accelerated construction of new fab plants in Arizona to create a major semiconductor cluster there.
