TSMC Forecasts 50% Profit Surge to T$543.3B, Boosts 2026 Capex by 37%
Taiwan Semiconductor’s first-quarter net profit is forecast to rise 50% to T$543.3 billion ($17.23 billion), potentially marking its highest-ever quarterly income and ninth straight quarter of growth. The company plans 2026 capital spending of $52–56 billion, up as much as 37%, signaling tight supply that could affect Apple’s device margins and delivery timelines.
1. TSMC Q1 Earnings Forecast
Taiwan Semiconductor Manufacturing Co expects first-quarter net profit of T$543.3 billion ($17.23 billion), representing a 50% year-on-year increase and potentially its highest quarterly income to date. This would extend its profit growth streak to nine consecutive quarters as AI infrastructure demand escalates.
2. Capital Spending Plans
The company has earmarked $52–56 billion for 2026 capital expenditures, up to 37% more than 2025’s $40.9 billion, reflecting management confidence in sustained AI chip demand. Major investments include $165 billion for new fabs in Arizona and a pivot to 3-nanometre chip production in Japan.
3. Implications for Apple
Surging AI chip demand and stretched 3-nanometre and advanced packaging capacity at TSMC could create bottlenecks for Apple’s next-generation devices. Potential delays or cost pressures on key components may influence Apple’s product margins and release schedules.