TSMC posted internet revenue of NT$505.7 billion (about $16 billion) for the quarter, up 35 p.c year-over-year and above analyst expectations. Income hit $33.7 billion, a 25.5 p.c improve from the identical interval final yr. The corporate expects almost 30 p.c income progress in 2026 and plans to spend between $52 billion and $56 billion on capital expenditures this yr, up from $40.9 billion in 2025.
Checking with the shoppers’ clients
Wei’s optimism stands in distinction to months of speculation about whether or not the AI trade is in a bubble. In November, Google CEO Sundar Pichai warned of “irrationality” within the AI market and mentioned no firm can be immune if a possible bubble bursts. OpenAI’s Sam Altman acknowledged in August that buyers are “overexcited” and that “somebody” will lose a “phenomenal amount of cash.”
However TSMC, which manufactures the chips that energy the AI growth, is betting the alternative method, with Wei telling analysts he spoke on to cloud suppliers to confirm that demand is actual earlier than committing to the spending improve.
“I wish to ensure that my clients’ demand are actual. So I talked to these cloud service suppliers, all of them,” Wei mentioned. “The reply is that I’m fairly glad with the reply. Truly, they present me the proof that the AI actually helps their enterprise.”
The earnings report landed the identical day the US and Taiwan finalized a commerce settlement that cuts tariffs on Taiwanese items to fifteen p.c, down from 20 p.c. The deal commits Taiwanese corporations to $250 billion in direct US funding, and TSMC is accelerating the enlargement of its Arizona chip fabrication amenities to match.
