Taiwan Semiconductor Reports Strong Quarterly Earnings
Chicago, IL – January 16, 2026 – Taiwan Semiconductor Manufacturing Company (TSMC) reported Q4 revenues of $33.73 billion, surpassing expectations by over $400 million and marking a 25.5% year-over-year increase. The company achieved profits of $16.3 billion, exceeding the consensus estimate of $15 billion, with gross margins rising to 62.3% and expected to reach between 63% and 65% in Q1 2026.
TSMC’s capital expenditure for 2026 has been increased to $52-$56 billion, a significant jump from previous projections, aimed at expanding semiconductor fabrication capabilities in Taiwan and Arizona. The buildout plan could total $165 billion and include multiple advanced packaging sites. CEO C.C. Wei indicated that current demand for advanced nodes is three times higher than available capacity, reflecting a growing backlog in orders.
