TSMC to Boost Investment as Profit Soars 35% Amid AI Boom

• Taiwanese chipmaker TSMC reported a 35% jump in net profit for the latest quarter, exceeding analyst estimates, driven by strong demand for artificial intelligence.
• The company plans to increase its capital spending by nearly 40% this year, with a budget of $52 billion-$56 billion for 2026, up from $40 billion last year.
• TSMC, a key supplier to Nvidia and Apple, saw its revenue increase 21% from a year earlier to over $33 billion in the last quarter.
• Despite concerns about an 'AI bubble,' TSMC's chairman and CEO C. C. Wei expressed confidence in the real and growing demand for AI.
• TSMC is accelerating construction of new plants in Arizona, part of a $165 billion investment in the U.S., to meet client demand and create a fabrication plant cluster.

Why It Matters: TSMC is significantly expanding investment and capacity due to surging AI-driven demand, despite market bubble concerns.