Overview
- TSMC reported a record fourth-quarter net profit of about $16 billion on sustained AI demand.
- The company projected 2026 capital spending of $52–$56 billion to add advanced-node capacity and packaging, a wave expected to lift equipment suppliers including ASML, Lam Research and Applied Materials.
- A new U.S.-Taiwan tariff agreement reduces some levies to 15% from 20% and links relief to roughly $250 billion of Taiwanese corporate investment in U.S. output, with $250 billion in credit assistance from Taiwan.
- TSMC is accelerating its U.S. footprint by seeking permits for another Arizona fab and a first advanced packaging facility, and it has purchased a second parcel of land in the state.
- Risks flagged include permitting and workforce hurdles in Arizona, potential Chinese backlash, and a Supreme Court review that could affect presidential tariff powers.