TSMC Leads AI-Driven Chip Boom with Bold Investment Plans

TSMC plans to increase capital spending by 40% amid strong profits from AI demand. It reported a 35% profit increase, with $16 billion net profit in the latest quarter. The company aims to spend up to $56 billion by 2026 on capital expenditures, driven by AI market dominance.

Taiwan's TSMC, the world's leading computer chip maker, aims to boost its capital expenditure by 40% this year. It reported a 35% increase in net profit for the latest quarter, thanks to booming artificial intelligence demands, outperforming analysts' expectations.

The company recorded a net profit of 506 billion new Taiwan dollars ($16 billion) for the October-December quarter and announced plans to raise its capital spending to between $52 billion and $56 billion by 2026. Shares have risen by over 8% this year, highlighting TSMC's strong foothold in the AI market.

In a statement, TSMC assured its continued support for AI trends, with CFO Wendell Huang noting increased spending in the coming years. Analysts affirm that TSMC's position, bolstered by strategic investments in the U.S., remains robust, with clients heavily reliant on its chip production.

(With inputs from agencies.)