TSMC Reports 35% Profit Increase, Plans Nearly 40% Capital Spending Rise on AI Demand

Taiwan Semiconductor Manufacturing Company (TSMC) reported a 35% rise in fourth-quarter net profit to 506 billion Taiwan dollars (about $16 billion), driven by strong demand for AI-related advanced chips. The company plans to increase its 2026 capital expenditure to 52-56 billion Taiwan dollars, up nearly 40% from last year, reflecting confidence in sustained AI-driven growth. CEO C.C. Wei acknowledged tight capacity and expressed cautious optimism amid concerns about potential overinvestment in AI infrastructure.