TSMC is no longer playing it safe. Having grown confident that the AI boom is here to stay, the foundry giant is lifting capital spending to record levels.
“AI is real. Not only real; it’s starting to grow into our daily life.” With that emphatic declaration, TSMC CEO C.C. Wei justified a major capital expenditure hike to cement the foundry’s role as the silicon backbone of the AI boom. TSMC is ramping up investment to 52-56 billion US dollars in 2026, up from last year’s 40.9 billion, in what amounts to a massive bet on the durability and scale of AI-driven demand.
Seasoned by many boom-bust cycles, TSMC previously held off on accelerated AI-driven capacity expansions, with capex not keeping up with revenue growth. “We used to be conservative,” Wei acknowledged.
This article is exclusively available to premium members of Bits&Chips. Already a premium member? Please log in. Not yet a premium member? Become one for only €15 and enjoy all the benefits.
