TSMC plans a record $64 billion investment by 2026 to expand its leading chip manufacturing capacity amid soaring AI demand, increasing its dominance in the global foundry market and strengthening its US and Taiwan facilities.
TSMC is pressing ahead with a larger spending plan as artificial-intelligence demand keeps its most advanced manufacturing lines stretched close to capacity. The contract chipmaker now expects capital expenditure of as much as $64 billion in 2026, a rise from the earlier range of $52 billion to $56 billion, as it races to add production, expand packaging and upgrade existing facilities. Industry estimates cited by TrendForce and other market trackers put TSMC’s share of the global foundry market at 72.5% in the second quarter of 2026, leaving Samsung Foundry and other rivals far behind.
The company’s latest numbers underline how concentrated the advanced-chip business has become. TSMC’s foundry revenue rose to nearly $40.2 billion in the second quarter, up 12.1% from the previous three months, according to the industry estimates cited in recent reports. That growth reflects persistent demand for the most sophisticated nodes, where customers building graphics processors, accelerators and custom silicon for data centres continue to seek production slots that remain scarce.
The bottleneck is not limited to wafer capacity. According to reporting from Tom’s Hardware, TSMC’s own equipment demand has almost doubled in the space of six months, a sign of how quickly the company is trying to expand both in Taiwan and overseas. Cliff Hou, TSMC’s deputy chief operating officer, said at Semicon Taiwan that equipment needs were about 1.9 times higher than at the end of the previous year. At the same time, the industry is still dealing with shortages of major manufacturing tools, which complicates delivery schedules and procurement costs.
TSMC is also deepening its long-term bet on the United States. Tom’s Hardware reported that the company has added a further $100 billion to its Arizona push, lifting its total planned investment there to as much as $265 billion. The plan would support at least four additional fabs and more advanced packaging capacity, potentially taking the site to 10 advanced fabs and two packaging plants over time. That expansion sits alongside TSMC’s ongoing build-out at home, where the company is adding 13 plants, and forms part of a wider pattern of geopolitical hedging across its manufacturing base.
The scale of the commitment has helped keep TSMC’s technology lead intact. The company began commercial production of its 2-nanometre-class process in the fourth quarter of 2025, and it is targeting the A14 node for 2028, with claims of 10% to 15% better performance at the same power consumption. Reuters reported that management plans to hold back wider use of High-NA EUV lithography in mass logic production until 2030, preferring to preserve yields and contain depreciation costs by relying on established process steps through the end of the decade. Investors will get a fuller update when TSMC reports again in October, when attention is likely to focus on 2-nanometre ramp-up, customer demand from hyperscale cloud groups and whether capacity remains tight into 2028.
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