TSMC Forecasts 30% Revenue Surge and $56B Capex for 2026
Taiwan Semiconductor Manufacturing Company (TSMC) delivered a stronger-than-expected outlook on Thursday, projecting capital expenditures of $52-56 billion for 2026. This represents at least a 25% increase from 2025, alongside a revenue growth approaching 30% for the year.
The world’s largest contract chipmaker reported fourth-quarter 2025 results that exceeded analyst expectations, with net profit jumping 35% to surpass NT$1 trillion (approximately $31 billion). Revenue for the December quarter rose 20.5% year-over-year, surpassing forecasts.
TSMC’s robust forecast signals strong confidence in the sustainability of the global AI boom. The company’s high-performance computing division, which includes AI processors for clients like Nvidia and AMD, accounted for 55% of sales in the quarter, while smartphone demand contributed 32%.
For the first quarter of 2026, TSMC guided revenue between $34.6-35.8 billion, representing 38% year-over-year growth at the midpoint. The company expects gross margins of 63-65% and operating margins of 54-56%, reflecting continued strong demand for leading-edge process technologies.
Following the announcement, TSMC’s ADRs climbed as much as 5.6% in U.S. trading, while key supplier ASML Holdings surged 8% to a record high in Europe, pushing its market value above $500 billion. The chipmaker’s ongoing 2nm capacity expansion is expected to drive continued strong performance throughout 2026.
Source: Bloomberg