TSMC Raises 2026 Capital Expenditure to $64 Billion

Taiwan Semiconductor Manufacturing Company increased its capital expenditure guidance for 2026 to between $60 billion and $64 billion, a significant rise from the $40.9 billion projected for 2025. The company is expanding production capacity to protect its 73% market share in contract semiconductor manufacturing, even as the PHLX Semiconductor Sector index has fallen approximately 30% since October 6.

CFO Wendell Huang stated that the majority of this spending is tied to long-term demand, asserting that the company has "no intention to leave any food on the table for others." While other industry players like Nvidia and Micron have experienced sharp share price declines, TSMC maintains more stable earnings due to its role as the primary manufacturer for advanced AI chips.

CEO C.C. Wei indicated that the company intends to avoid sudden price hikes for logic chips despite current supply constraints.