Taiwan chip maker TSMC to expand investment after profit rise

TSMC reported a 35% rise in quarterly net profit to NT$506 billion and said it will raise 2026 capital spending to $52–$56 billion, up from about $40 billion last year.

Taiwan Semiconductor Manufacturing Co. reported stronger quarterly results and announced a major increase in planned capital spending for 2026. The company said net profit for October–December rose 35% to NT$506 billion and revenue climbed 21% to NT$1.046 trillion. TSMC plans to boost capital expenditure to $52–$56 billion for 2026, up from about $40 billion a year earlier. The company framed the moves in the context of stronger demand tied to artificial intelligence and wider industry investment in AI infrastructure. Key details: - Net profit for the October–December quarter was NT$506 billion, a 35% year-on-year increase (about US$16 billion). - Revenue for the quarter rose 21% to more than NT$1.046 trillion (about US$33 billion). - TSMC said 2026 capital expenditure will be $52–$56 billion, compared with roughly $40 billion last year. - The company has pledged about $165 billion of investments in the United States and is speeding construction of new plants in Arizona. - Taiwan-listed shares have climbed more than 8% year-to-date and reached record highs this month; market capitalization is about $1.4 trillion. - TSMC’s CFO said spending would be "significantly higher" over the next three years, and some analysts noted the company’s role supplying chips for AI workloads. Summary: TSMC’s quarterly results and updated capital plan signal a substantial uplift in planned investment for 2026 and continued focus on expanding production capacity, including in the United States. Company executives have described expectations of sustained demand for leading-edge process technologies and higher spending over the coming years. The timeline for specific projects was described as accelerating in places such as Arizona, with further details provided by the company during its announcements.