TSMC Increases Capital Expenditure to Support AI Chip Demand

TSMC is projected to report a sixth consecutive quarter of record earnings, driven by robust demand for AI chips and advanced packaging technology. The company has raised its 2026 capital expenditure guidance to between $60 billion and $64 billion, primarily allocated towards 3nm expansion, 2nm mass production, A16 equipment installation, and CoWoS advanced packaging. This significant investment underscores TSMC's confidence in future AI computing demand and its strategy to build capacity ahead of time.