Taiwan Semiconductor Manufacturing Co reports record Q2 earnings but warns of higher capital spending, spooking investors.
Taiwan Semiconductor Manufacturing Co (TSM) posted stronger-than-expected second-quarter earnings but announced plans to boost capital expenditures to between $60 billion and $64 billion this year, up from a prior $52 billion to $56 billion forecast. The increase reflects higher spending on new U.S. facilities, including an additional $100 billion commitment for Arizona plants, adding to its $165 billion U.S. investment plan.
TSMC’s high-performance computing segment, driven by AI chip demand, accounted for two-thirds of revenue last quarter. Despite robust growth, investors remain cautious about long-term demand sustainability and the impact of elevated capex on returns. Shares fell following the announcement.
The company expects production capacity to ramp up in the second half of 2026, though details on the $100 billion U.S. expansion remain limited.