TSMC saw its revenue increase by more than half in August. The Taiwanese chipmaker is benefiting from strong demand for processors for AI infrastructure, but at the same time is struggling to expand its production capacity quickly enough.
Revenue last month totaled 514.8 billion New Taiwan dollars, equivalent to approximately 16.3 billion U.S. dollars. That’s 53.3 percent more than a year earlier. For the current quarter, analysts are forecasting an average revenue growth of 46.8 percent, according to Bloomberg.
Twenty factories at once
This growth is primarily driven by investments in AI infrastructure. Major chip designers such as Nvidia have their advanced processors manufactured by TSMC. Apple is also among the company’s most important customers.
The challenge for TSMC now is not so much finding customers as it is ramping up production. The company is currently working on about twenty new factories and expansions in Taiwan and other countries. Previously, there were typically four or five new factory buildings under development at the same time.
According to Deputy Co-COO Cliff Hou, even that sharp acceleration is insufficient to fully keep up with demand. TSMC’s need for chip-manufacturing equipment has nearly doubled since the end of last year.
This expansion translates into significantly higher investments. TSMC expects capital expenditures of between $60 billion and $64 billion this year, a record. For all of 2026, the company anticipates revenue growth of just over 40 percent in dollars.
ASML machines starting in 2030
The growing need for production capacity also has implications for ASML. TSMC has agreed to use High-NA EUV systems from the Dutch equipment manufacturer in mass production starting in 2030. With this move, the company is shifting from its previous cautious stance toward the technology.
Until now, TSMC had considered the machines relatively expensive for large-scale deployment. A High-NA EUV system can cost approximately $400 million. However, due to the sustained demand for increasingly advanced chips, investing in new manufacturing technology is becoming more important.
TSMC expects strong demand for AI chips to continue into 2027 and beyond. The company’s stock has risen in value by about 60 percent since the beginning of this year.