TSMC Sees Strong 2026 on AI Demand, Plans More Overseas Spending

TaiwanPlus News

TSMC is forecasting a strong 2026 on sustained AI demand after a standout 2025, outlining higher overseas spending at its quarterly earnings conference in Taipei. While investors pressed for details on US expansion, Chair and CEO C.C. Wei only pointed to a second land purchase in Arizona as a signal that TSMC plans to expand with more fabs.

Transcript

00:002025 was another big year for Taiwan's biggest company, chip giant TSMC.

00:05And here at its earnings conference in Taipei, it says 2026 looks to be a strong year as well due to AI demand.

00:12The company gave a first quarter guidance of up to US$35.8 billion in revenue,

00:18which would represent a year-on-year increase of up to 40%.

00:21The company will also see a large increase in its capital expenditure this year,

00:26between US$52 and US$56 billion, an increase of 27% to 37%.

00:31That money will be spent on more factories to meet growing AI demand,

00:35which the firm says remains strong, downplaying concerns about an AI bubble.

00:40And some analysts agree.

00:56But the question on many investors' minds is whether the company would confirm recent media reports

01:06that it will nearly double the number of facilities in Arizona as part of a broad US-Taiwan trade deal.

01:12The company gave few details on the new fabs, but pointed to a recent land purchase in Arizona.

01:17The details may come out along with the trade deal, reportedly as soon as this month.

01:34Whatever the exact terms of their US expansion,

01:372026 will be a year of big spending and growth for TSMC.

01:41I'm Antoine and Chris Gorin in Taipei for Taiwan Plus.

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