Key Facts on TSMC’s AI Confidence and Spending Plans
Taiwan Semiconductor Manufacturing Company (TSMC) recently reported robust financial results for Q4 2025, indicating a significant year-over-year revenue growth of 20.5%. The company’s net income increased by 35%, and TSMC forecasts a revenue rise of nearly 30% for 2026. The demand for AI accelerators is a key driver; TSMC expects their revenue to grow by at least 50% annually through 2029.
In response to increased AI-related demand, TSMC plans to raise its capital expenditures to between $52 billion and $56 billion for 2026, up from around $40 billion in 2025. The company is also expediting the commencement of production at its second fab in Arizona, aiming for high-volume manufacturing by the second half of 2027. TSMC’s Chairman and CEO, C.C. Wei, emphasized confidence in AI as a “megatrend” following discussions with customers, although he acknowledged risks associated with potential overinvestment.
