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TSMC Sets Record Quarter, Hikes 2026 Outlook and Capex on Multi‑Year AI Demand

Executives describe AI as a durable megatrend that supports higher prices to fund new leading‑edge capacity.

Overview

  • The chipmaker reported Q4 revenue of about $33.7 billion and net profit near $16 billion, beating forecasts with gross margin at 62.3%.
  • Guidance calls for roughly 30% revenue growth in 2026 and capital spending of $52–56 billion, with 70–80% directed to 7nm and below.
  • TSMC is enlarging its Arizona footprint with an additional 900 acres, permit applications for a fourth fab and a first advanced packaging plant, and an accelerated second‑fab timeline targeting high‑volume output in the second half of 2027.
  • Management signaled continued wafer price increases after earlier hikes, citing the need to cover rising node costs and aiming to lift gross margin toward 65%.
  • Two plants are already producing 2nm parts with good yields, a very fast 2nm ramp is planned for 2026 including A16 volume in the second half, and roughly 30% of 2nm output is slated for the U.S.