TSMC Rises CapEx Plans for 2026

On the wings of better-than-expected profit in the fourth quarter of 2025, TSMC announced it now expects higher CapEx this year. The chipmaker said Capex would be between $52 billion and $56 billion for the full year, up from $40.9 billion in 2025.

The Taiwan-headquartered company forecast revenue in the current quarter to increase between 35.7% and 40% year-on-year, to as much as $35.8 billion. Q4 net profit increased 35% to TWD505.7 billion ($16 billion). The company benefited from soaring demand for high-performance chips for AI applications.

Chair and CEO CC Wei noted in its earnings call that developments in the AI market continue to be very positive for the company, with revenue from AI accelerators accounting for a high-teens percentage of total revenue in 2025. Regarding rising component prices, particularly memory, Wei explained that most of its customers focus on high-end smartphones and PCs, which are less sensitive to price changes. “They continue to give us a very healthy forecast this year and next year.”

Shipments of 3nm chips accounted for 28% of total wafer revenue, up from 26% a year earlier, while 5nm products made up 35%, mostly steady YoY. Earlier this month, the company reported Q4 revenue grew 20.5% to TWD1.1 trillion. Full-year sales jumped 31.6% to a record of TWD3.8 trillion.