"TSMC posted net income of NT$505.7 billion (about $16 billion) for the quarter, up 35 percent year-over-year and above analyst expectations. Revenue hit $33.7 billion, a 25.5 percent increase from the same period last year. The company expects nearly 30 percent revenue growth in 2026 and plans to spend between $52 billion and $56 billion on capital expenditures this year, up from $40.9 billion in 2025. Wei's optimism stands in contrast to months of speculation about whether the AI industry is in a bubble."
"In November, Google CEO Sundar Pichai warned of "irrationality" in the AI market and said no company would be immune if a potential bubble bursts. OpenAI's Sam Altman acknowledged in August that investors are "overexcited" and that "someone" will lose a "phenomenal amount of money." But TSMC, which manufactures the chips that power the AI boom, is betting the opposite way, with Wei telling analysts he spoke directly to cloud providers to verify that demand is real before committing to the spending increase."
""I want to make sure that my customers' demand are real. So I talked to those cloud service providers, all of them," Wei said. "The answer is that I'm quite satisfied with the answer. Actually, they show me the evidence that the AI really helps their business.""
TSMC reported net income of NT$505.7 billion (about $16 billion) for the quarter, a 35 percent year-over-year increase, with revenue of $33.7 billion, up 25.5 percent. The company projects nearly 30 percent revenue growth in 2026 and plans capital expenditures of $52 to $56 billion for the year, up from $40.9 billion in 2025. TSMC's leadership verified demand directly with cloud service providers and cited evidence that AI adoption is benefiting their businesses. The earnings announcement coincided with a US-Taiwan trade agreement reducing tariffs on Taiwanese goods to 15 percent and committing $250 billion in direct US investment, prompting accelerated Arizona fab expansion.
Read at Ars Technica
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