TSMC Raises 2026 Capital Expenditure to $54 Billion for AI

Taiwan Semiconductor Manufacturing Company reported record monthly net revenue of approximately NT$416.98 billion (roughly USD 13.2 billion) for May 2026. This reflects a 30.1% increase over May 2025, bringing cumulative revenue for the first five months of 2026 to NT$1.96 trillion. The company expects total U.S. dollar-denominated revenue to grow by more than 30% throughout the year, with second-quarter forecasts between USD 39 billion and USD 40.2 billion.

To meet accelerating AI-driven demand, the company increased its 2026 capital expenditure plan to $54 billion, surpassing consensus estimates of $47.8 billion. Management now projects AI-related revenue to grow at an annualized rate of 55% through 2029, an increase from the previous 45% estimate.

Chairman C.C. Wei confirmed that requests for additional capacity from the company's largest hyperscaler AI customers are supported by end demand. Consequently, the company is planning expansions in Arizona, including additional advanced fabs and a U.S.-based advanced packaging facility to address capacity constraints.