Taiwan Semiconductor Manufacturing Company (TSMC) said it expects sales of up to $54.3 billion in the December quarter. The forecast was better than analysts expected, Moneyweb reported.
That figure should mean a rise of about 44% in the company’s revenue for 2026. It came after profit for July to September jumped by 69%, which was also better than expected.
The strong outlook comes at a time when many investors are worried about spending on artificial intelligence (AI). Some fear that the global rush to build AI systems cannot last.
TSMC makes the most advanced chips for Nvidia and Apple. Its results offered a different picture from the negative mood around many AI companies, according to the report.
Further down the supply chain, some firms are under pressure. Questions about returns on investment and long-term funding have hurt companies such as CoreWeave, a customer of Nvidia. CoreWeave’s share and bond prices fell sharply in a wide selloff.
TSMC’s own sales growth has sped up. The company earlier reported that sales for July to September rose by 51%, more than the market expected.
The company has also increased its spending on new capacity. It said its capital spending will reach as much as $64 billion this year, which would be a record.
TSMC is based in Hsinchu, Taiwan. It is seen as a guide to global AI demand because most big players depend on it. Nvidia, Advanced Micro Devices and Google all use TSMC to turn their chip designs into real parts.
The company’s shares reached a record high this month. They were among the first chip stocks in the world to hit a new high after a market crash in July.
TSMC has done better than other chip firms because it leads in making the processors that power AI. Even so, its shares fell along with other tech stocks over the past week.
Analysts have been raising their forecasts for TSMC’s capital spending in 2027. Goldman Sachs now expects $85 billion and UBS expects $90 billion.
Both figures are higher than the $75 billion average of firms surveyed by Bloomberg.
TSMC is now trying to build and equip about 20 factories in Taiwan and in other countries. The company usually works on only four or five new buildings at the same time.
It has already pledged $265 billion to build a campus in Arizona in the United States. Bloomberg News reported that TSMC is also thinking about another US site in Texas. This is because of the rush in the US to build data centres.
According to the report, the bigger questions are about 2027. The Arizona growth, a possible Texas hub and talks linked to Terafab could affect spending and profit margins overseas.
Reports in Taiwan point to price increases of between 3% and 6% for silicon wafers.
Investors are also waiting for updates on TSMC’s next chip process, called A14, and on advanced packaging. These updates should show how TSMC plans to respond to the challenge from Intel.
Source: this article is based on reporting by Moneyweb. Image: Moneyweb. Written with the help of AI and published by the Tzaneen Voice Business desk. See our Editorial Standards.
Anelisa Nkuna covers business and money news for Tzaneen Voice. Anelisa reports on the rand, fuel prices, interest rates, jobs, Eskom, Transnet, farming and company results. The aim is simple: explain what the numbers mean for household budgets, small businesses and workers in South Africa.