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TSMC chairman C.C. Wei detailed that the extra funding would support construction of multiple logic wafer fabrication plants for 2-nanometer and below technologies along with advanced packaging facilities in Arizona. The move forms part of broader capacity expansion efforts across Taiwan, Japan and the United States to address customer needs. Wei emphasised the significant gap between demand and supply that the company is striving to close.
TSMC posted net profit of NT$706.6 billion, or about $22 billion, for the April-June quarter, a 77.4 percent increase from the previous year that surpassed analyst forecasts of NT$624.4 billion, the company reported. Full-year revenue growth for 2026 is now projected to exceed 40 percent in US dollar terms. These results underscore the ongoing strength in AI-related semiconductor orders.
“We now expect our full-year 2026 revenue growth to be slightly above 40 % year-over-year in US dollar terms,” Wei said. The chairman added that TSMC is moving as fast as possible to boost chipmaking capacity in key regions. “The demand and the supply, the gap is so big, so we are working very hard to narrow the gap,” he stated.
Chief financial officer Wendell Huang indicated that TSMC would raise its 2026 capital expenditure budget to between $60 billion and $64 billion to back customer growth. Huang noted that higher capital spending at the company has historically aligned with stronger expansion opportunities in subsequent years. The executive expressed confidence that no bottlenecks would hinder the capacity buildup plans.
Counterpoint Research senior analyst William Li attributed the profit jump to exceptionally robust AI infrastructure spending despite macroeconomic uncertainties. Li pointed to demand for AI GPUs, ASICs and advanced packaging that continues to outpace projections. The analyst cautioned, however, that constraints in extreme ultraviolet lithography tools and investments in overseas fabs could affect near-term margins.
The latest commitment extends TSMC’s longstanding push to establish advanced manufacturing in the United States, according to earlier assessments from the US Department of Commerce. The department had awarded up to $6.6 billion in CHIPS Act funding to support an initial $65 billion investment in three fabs that is anticipated to generate more than 6,000 direct manufacturing jobs and over 20,000 construction positions, National Institute of Standards and Technology figures show. Omdia principal analyst Simon Chen described concerns over overstretched technology valuations as overstated, citing structural demand backed by substantial capital expenditures from major cloud operators.
