Company Reports

Taiwan Semiconductor Manufacturing Company raised its 2026 capex budget by USD 8 billion to USD 62 billion at the midpoint and full-year revenue growth target to over 40% in US dollars. It announced plans to invest an additional USD 100 billion in Arizona, cumulatively totaling USD 265 billion.

Taiwan Semiconductor Manufacturing Co. is the world’s largest dedicated contract chip manufacturer, or foundry, with over 70% market share as of mid-2026. It makes integrated circuits for customers based on their proprietary IC designs. TSMC has long benefited from semiconductor firms around the globe transitioning from integrated device manufacturers to fabless designers. Like all foundries, it assumes the costs and capital expenditures of running factories amid a highly cyclical market for its customers. Foundries tend to add excessive capacity during times of burgeoning demand, which can result in underutilization during downturns, which hampers profitability.

We assess the impact on our coverage of Taiwan Semiconductor Manufacturing Company, United Microelectronics, SMIC, and Hua Hong Semiconductor after Huawei revealed its approach to improving chip performance, called Tau Scaling Law. SMIC and Hua Hong shares jumped on the news.

Taiwan Semiconductor Manufacturing Company held the first session of its annual symposium in Santa Clara, California. It unveiled a three-year road map on cutting-edge process nodes, including A13, A12, and N2U, and updates on market size, advanced packaging, and mature nodes.

Taiwan Semiconductor Manufacturing Co. refined its 2026 US dollar revenue and capital expenditure guidance to the upper bounds of prior ranges. First-quarter revenue topped TWD 1.1 trillion (USD 35.9 billion), up 6% sequentially. Gross margin grew 746 basis points from the prior quarter to 62.3%.

Shares of Taiwan Semiconductor Manufacturing Company, Samsung Electronics, and SK Hynix have fallen by 9%-22% since the war in the Middle East broke out, as the escalating conflict threatens the supply stability of key energy sources such as crude oil and liquefied natural gas.

Taiwan Semiconductor Manufacturing guided its 2026 USD revenue to grow by 30% and capital expenditure as high as USD 56 billion. Its December quarter revenue topped TWD 1 trillion (USD 33.7 billion), up 6% sequentially. Gross margin grew 287 basis points from the prior quarter to 62.3%.

Taiwan Semiconductor Manufacturing Co. is the world’s largest dedicated contract chip manufacturer, or foundry, with about 70% market share in 2025. It makes integrated circuits for customers based on their proprietary IC designs. TSMC has long benefited from semiconductor firms around the globe transitioning from integrated device manufacturers to fabless designers. Like all foundries, it assumes the costs and capital expenditures of running factories amid a highly cyclical market for its customers. Foundries tend to add excessive capacity during times of burgeoning demand, which can result in underutilization during downturns that hampers profitability.

TSMC raised its full-year US dollar revenue growth outlook to the mid-30s from 30% and the lower bound of capital expenditure by 5% to USD 40 billion. Third-quarter revenue was TWD 990 billion (USD 33.1 billion), up 6% sequentially. Gross margin grew 84 basis points from the prior quarter to 59.5%.

Taiwan Semiconductor Manufacturing Co. is the world’s largest dedicated contract chip manufacturer, or foundry, with mid-60s market share in 2024. It makes integrated circuits for customers based on their proprietary IC designs. TSMC has long benefited from semiconductor firms around the globe transitioning from integrated device manufacturers to fabless designers. Like all foundries, it assumes the costs and capital expenditures of running factories amid a highly cyclical market for its customers. Foundries tend to add excessive capacity during times of burgeoning demand, which can result in underutilization during downturns that hampers profitability.

The share price of Taiwan Semiconductor Manufacturing Company has been steady amid Intel and Nvidia's plan to codevelop multiple generations of custom data center and PC products. Nvidia will acquire USD 5 billion of Intel’s common stock at USD 23.28 per share.

The US Bureau of Industry and Security revoked the "validated end-user" status of Taiwan Semiconductor Manufacturing Company, Samsung Electronics, and SK Hynix. This requires them to apply for export licenses to ship certain equipment into China from 2026.

Taiwan Semiconductor Manufacturing Company is the world’s largest dedicated contract chip manufacturer, or foundry, with mid-60s market share in 2024. It makes integrated circuits for customers based on their proprietary IC designs. TSMC has long benefited from semiconductor firms around the globe transitioning from integrated device manufacturers to fabless designers. Like all foundries, it assumes the costs and capital expenditures of running factories amid a highly cyclical market for its customers. Foundries tend to add excessive capacity during times of burgeoning demand, which can result in underutilization during downturns that hampers profitability.

TSMC raised its full-year revenue growth guidance by 30% in USD terms from the mid-20s. Its June-quarter revenue was TWD 934 billion (USD 30.1 billion), up 11% sequentially. Gross margin fell 17 basis points from the prior quarter to 58.6%.

Taiwan Semiconductor Manufacturing Co. is the world’s largest dedicated contract chip manufacturer, or foundry, with mid-60s market share in 2024. It makes integrated circuits for customers based on their proprietary IC designs. TSMC has long benefited from semiconductor firms around the globe transitioning from integrated device manufacturers to fabless designers. Like all foundries, it assumes the costs and capital expenditures of running factories amid a highly cyclical market for its customers. Foundries tend to add excessive capacity during times of burgeoning demand, which can result in underutilization during downturns that hampers profitability.

TSMC's first-quarter 2025 revenue was TWD 839 billion (USD 25.5 billion), down 3% sequentially. Gross margin dipped 21 basis points sequentially to 58.8%. The numbers were at the high end of management's guidance.

TSMC plans to invest another USD 100 billion into Arizona chipmaking facilities. The latest plans include three fabrication plants, or fabs, two advanced packaging facilities, and a research and development center. This brings TSMC's cumulative investment budget in the US to USD 165 billion.

Taiwan Semiconductor Manufacturing Co. is the world’s largest dedicated contract chip manufacturer, or foundry, with over 60% market share. It makes integrated circuits for customers based on their proprietary IC designs. TSMC has long benefited from semiconductor firms around the globe transitioning from integrated device manufacturers to fabless designers. Like all foundries, it assumes the costs and capital expenditures of running factories amid a highly cyclical market for its customers. Foundries tend to add excessive capacity during times of burgeoning demand, which can result in underutilization during downturns that hampers profitability.

US-traded ADRs of TSMC tumbled 13% after Chinese artificial intelligence firm DeepSeek released its open-source reasoning model R1 that achieves capabilities on par with that of OpenAI and Google at a fraction of the latter's costs.

Taiwan Semiconductor's fourth-quarter 2024 revenue was TWD 868 billion (USD 26.9 billion), up 39% year on year. Gross margin increased 6 percentage points from the year-ago quarter to 59%. The numbers beat management guidance.