TSMC expands global manufacturing as profits hit record

The latest results from TSMC underscore robust semiconductor demand, rising capital expenditure, and continued international expansion, as governments prioritise secure chip supply chains.
TSMC posted record quarterly profits as advanced chip demand remained strong, with capital spending rising and further manufacturing expansion planned across the US, Japan and Taiwan.

TSMC reported a strong fourth-quarter performance, posting a 35 percent rise in profit to a record level, supported by sustained demand for advanced chips.

The company forecast robust growth for 2026, citing continued customer interest and tight capacity, while highlighting expectations for a significant increase in revenue in the first quarter of the year.

The Taiwanese semiconductor manufacturer confirmed that capital spending reached US$40.9 billion in 2025, slightly above earlier guidance, and indicated further increases ahead, with investment potentially rising to as much as US$56 billion in 2026 and accelerating later in the decade.

Ongoing projects include additional manufacturing capacity in the US, expansion in Japan, and continued investment in Taiwan.

TSMC also signalled that more US facilities may be planned, following earlier commitments to large-scale investment in Arizona.

Developments come amid discussions between Taiwan and the US on trade and tariffs, as well as broader policy efforts in Washington to encourage domestic semiconductor production.

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