TSMC's Profit Jumps 35% on AI Demand; Plans Major Capex Increase

• TSMC, the world's largest chip manufacturer, reported a 35% surge in net profit for the latest quarter, driven by robust demand for Artificial Intelligence (AI) chips.
• The company's net profit reached 506 billion New Taiwan Dollars ($16 billion) in the October-December quarter, exceeding analyst expectations.
• Following strong performance, TSMC plans to increase its capital expenditure (capex) by approximately 40% this year, setting its 2026 budget at $52–56 billion.
• TSMC's CFO Wendell Huang stated that strong demand for advanced process technology will continue to support the business, with spending remaining "quite high" for the next three years.
• With a market capitalization of approximately $1.4 trillion, TSMC is Asia's most valuable company and is investing $165 billion in new plants in Arizona, USA.

Why It Matters: TSMC's profits soared due to AI demand, leading to significant capital expenditure plans and a positive outlook.