TSMC posts record earnings as U.S. investment accelerates

Taiwan Semiconductor Manufacturing Company reported record profitability, with fourth-quarter profit up 35%. High Performance Computing now accounts for 55% of revenue, compared with 32% from smartphones, highlighting the shift toward AI and data-center demand.

Management guided 2026 revenue growth of around 30% and capital expenditure of $52–$56B. TSMC typically aligns spending closely with confirmed orders, so this level of forward investment suggests sustained capacity constraints and long-term commitments from hyperscalers.

Geographically, North America represented 74% of customer revenue last quarter. That concentration is reflected in capital allocation, with four Arizona fabs underway and the company’s first advanced packaging facility planned in the U.S.

The expansion aligns with a newly announced U.S.–Taiwan trade framework that lowers tariffs on Taiwanese exports while tying additional reductions to semiconductor investment during construction. Taiwan has backed the agreement with $500B in combined public and private investment commitments, signaling a long-term push toward U.S.-based semiconductor manufacturing.