Key Points
Taiwan Semiconductor Manufacturing Company (TSMC) reported a 26% revenue increase in its latest quarterly earnings, reaching $33.7 billion. The company projects first-quarter revenue will rise by 38% and full-year revenue will grow by 30%. TSMC is increasing its capital expenditure to between $52 billion and $56 billion, significantly up from around $41 billion planned for 2025.
In preparation for this increase, TSMC consulted with key customers, including Nvidia and Broadcom, to assess the long-term demand for cloud computing services. This decision aligns with the sustained profitability of major cloud providers like Amazon, Microsoft, and Alphabet, indicating an ongoing strong demand for AI infrastructure.
