Record quarterly profit and stronger guidance underscore the chipmaker’s confidence in long-term growth across the AI semiconductor market.
Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker and a key supplier to Nvidia and Apple, has raised its 2026 capital expenditure forecast after reporting record second-quarter earnings, signalling continued confidence in long-term demand for artificial intelligence (AI) chips.
The company now expects capital spending of US$60-64 billion this year, up from its earlier guidance of US$52-56 billion. It also said investment over the next three years will be significantly higher than in the previous three-year period, reflecting expectations of sustained AI-driven growth.
TSMC posted a 77 per cent year-on-year increase in second-quarter net profit to a record T$706.6 billion (US$22 billion), beating market estimates and marking its ninth consecutive quarter of double-digit profit growth. The company attributed the performance to robust demand for advanced chips used in AI applications.
Chief executive officer C.C. Wei said cloud service providers continue to signal strong AI-related demand, reinforcing TSMC’s confidence in the long-term AI market. The company also raised its full-year 2026 revenue forecast, expecting sales in US dollar terms to grow by slightly more than 40 per cent, compared with its earlier guidance of more than 30 per cent.
Separately, TSMC confirmed an additional US$100 billion investment in Arizona, adding to the US$165 billion already committed to its US manufacturing operations. The expansion is expected to include additional semiconductor fabrication and advanced packaging facilities, subject to market conditions, and is aimed at strengthening the US semiconductor supply chain.
Wei said the company continues to balance customer demand forecasts with its own market analysis to avoid excess capacity. He also noted that the emergence of agentic AI is increasing demand for CPUs alongside AI accelerators, driving additional demand for advanced silicon.
Analysts said strong demand for TSMC’s 3nm and 2nm manufacturing technologies, along with its advanced chip on wafer on substrate (CoWoS) packaging, continues to support growth. The upbeat outlook follows ASML’s recent decision to raise its own 2026 sales forecast, highlighting sustained momentum across the global AI semiconductor supply chain.
