TSMC To Invest a Record $56 Billion to Dominate the AI Sector

The technology giant TSMC ended 2025 with growing profits. Despite the success, the company announced plans to invest $56 billion in the development of artificial intelligence.

Company revenue surpasses $100 billion for the first time

The fourth quarter of 2025 became historic for TSMC. The company’s net profit reached $16 billion (up 35%), and total annual revenue exceeded the $100 billion mark for the first time in its history. Chips manufactured using the 7 nm process accounted for more than 70% of total plate revenue.

Why is TSMC’s CEO concerned about the future?

Despite the success, CEO Wei Zhejian expressed concerns during discussions with investors. For 2026, the company plans to spend around $52–56 billion, nearly $15 billion more than last year. The CEO’s concerns stem from a potential “overestimation of AI demand” and fears that “if the calculations are wrong, this investment could be catastrophic for TSMC.”

Other major risks include a shortage of system memory on the market and the unpredictable tariff policy of the United States.

TSMC’s expansion strategy

TSMC is not abandoning its expansion plans: the company is already acquiring additional land in Arizona for the construction of new factories.

Analysts also predict that TSMC will maintain its leadership as the supplier for Apple, Nvidia, and AMD in 2026, driven by the launch of mass production using the 2 nm process.