Taipei:Taiwan Semiconductor Manufacturing Co. (TSMC) announced an upward revision of its 2026 sales growth forecast to 44 percent in U.S. dollar terms, while maintaining its capital expenditure budget unchanged.
According to Focus Taiwan, TSMC CEO C.C. Wei stated at an investor conference that the company anticipates strong demand for its advanced processes, particularly for chips manufactured using its 2-nanometer process, which is the latest technology TSMC has introduced into commercial production. This demand is expected to bolster TSMC's performance in 2026 due to its technological lead and robust customer support.
The new 44 percent growth estimate marks an increase from a previous forecast made in July, where the growth was anticipated to be slightly more than 40 percent. TSMC's third-quarter results showed record earnings per share of NT$29.43, compared to NT$17.44 the previous year and NT$27.25 for the previous quarter. Notably, chips produced with the 2nm process made up 8 percent of total sales in the third quarter, an increase from 3 percent in the second quarter.
TSMC's Chief Financial Officer Wendell Huang expressed optimism for the fourth quarter, projecting revenue between US$52.3 billion and US$54.3 billion, with a midpoint representing a 58 percent increase from the previous year and a 14 percent rise from the prior quarter. Gross margin is expected to be between 65-67 percent, with an operating margin estimated at 56.5-58.5 percent for the fourth quarter.
Huang also mentioned that TSMC is keeping its 2026 capex budget between US$60 billion and US$64 billion, reflecting expectations of strong demand, particularly from emerging AI applications. TSMC plans to increase capex from 2026 to 2028, aligning with customer demand, while also aiming to deliver higher returns to shareholders through attractive dividends.
Demand for TSMC's Chip-on-Wafer-on-Substrate (CoWoS) packaging technology, popular in AI applications, remains robust. TSMC will continue to collaborate with customers to ensure adequate capacity to meet their needs. Wei emphasized the significance of CoWoS as a preferred choice for integrated circuit assembly, highlighting TSMC's satisfactory yield rates for this technology.