TSMC is steering its 2026 capital expenditure toward the upper end of its earlier guidance of 52-56 billion dollars, which was already a massive hike compared to last year. The move follows a strong first quarter marked by 58 percent profit growth year-on-year. TSMC predicts a revenue increase of more than 30 percent this year while maintaining or even improving margins. Executives at the foundry, however, did warn that the Gulf conflict could eventually hurt profitability.
The higher capex will primarily support advanced process technologies and capacity expansion, as TSMC prepares for continued demand in AI accelerators and next-generation chips. This aligns with broader industry trends where leading-edge manufacturing remains a bottleneck.
