Taiwan Semiconductor reported a fourth-quarter net profit of NT$506 billion, a 35% increase year-over-year, surpassing consensus estimates. Revenue climbed 20.5% to NT$1.046 trillion, marking the company’s eighth consecutive quarter of year-over-year profit growth. Advanced nodes (7 nanometer and below) accounted for 77% of wafer revenue during the period, underscoring robust demand for high-performance computing and artificial intelligence applications.

The company’s high-performance computing division, which includes AI and 5G chips, drove the bulk of quarterly sales as global datacenter operators accelerated deployment of AI server fleets. Taiwan Semiconductor now produces over half of the world’s leading-edge chips and has secured production contracts with multiple top cloud and AI firms. The ongoing shift toward smaller process geometries continues to benefit its comprehensive foundry service offerings, including advanced packaging solutions.

Management unveiled plans to increase capital spending to a range of US$52 billion–US$56 billion in 2026, up from approximately US$40 billion in the prior year. This investment will fund expansion of 2 nanometer capacity—slated to come online later in the year—and broaden advanced packaging capabilities. The projected rise in wafer-fabrication equipment orders reflects confidence in sustained growth of AI, automotive electronics and next-generation mobile processors.

As part of a US$165 billion multi-year strategy, the company is scaling up manufacturing footprint in Arizona and partnering with local suppliers to secure critical materials. Executives highlighted that on-shore capacity will support customer diversification and align with government initiatives to strengthen domestic semiconductor supply chains. With global foundry share above 50% and a pipeline of AI chip designs from major cloud and consumer electronics companies, the company positions itself for continued margin resilience and cash-flow generation in the years ahead.