TSMC Posts Record Profit and Pledges $100 Billion More for US Expansion

Taiwan Semiconductor Manufacturing Co (TSMC) reported a 77% surge in net profit for the second quarter of 2026, reaching a record NT$706.6 billion ($22 billion), driven by insatiable AI chip demand. Revenue hit $40.2 billion, exceeding analyst expectations Source: euronewsen.

Earnings and Spending

• Second-quarter net profit rose 77% year-on-year, with revenue up 36% to $40.2 billion Source: euronewsen.
• Capital expenditure forecast was raised to $60–64 billion for 2026, up from $52–56 billion, as TSMC expands capacity for AI and advanced nodes Source: thenextweb.

US Expansion and Price Hikes

TSMC pledged an additional $100 billion for advanced fabrication plants in Arizona, bringing total US investment to $265 billion. The new facilities will focus on 2-nanometre and below technologies Source: scmp. This expansion comes amid political pressure from the Trump administration to manufacture chips domestically. TSMC is also planning to raise prices on advanced nodes by 5-10% in 2027, with additional premiums for high-performance computing capacity, potentially increasing some services by up to 25% Source: tomshardware.

Investor Sentiment

Despite record earnings, TSMC's stock fell 4% as investors grew wary of escalating AI infrastructure spending without proportional returns. The broader Nasdaq 100 dropped 1.4% on the same day Source: thenextweb. Analysts estimate TSMC's US chips could cost 20-50% more than those produced in Taiwan, with much of the increased cost expected to be passed to customers like Nvidia and Apple Source: cnbc.