EXCLUSIVE: TSMC Plans Up to $64 Billion in Capex and Still Isn’t ‘Building Enough,’ Says Applied Materials Veteran
Key takeaways
- TSMC’s $60‑$64 billion capex plan may still leave it under‑built, especially in advanced packaging, risking supply constraints for AI‑driven customers.
- Q3 revenue NT$1.49 trillion ($46.71 billion)
- Q3 YoY growth 50%
- Capex plan $60‑$64 billion
What happened
TSMC (NYSE: TSM) announced record third‑quarter revenue of NT$1.49 trillion ($46.71 billion), up 50% YoY and above the NT$1.46 trillion forecast. CEO Steve Williams, a 25‑year Applied Materials veteran, warned that the company’s $60‑$64 billion capex plan may still fall short, citing advanced packaging constraints and a sold‑out leading‑edge wafer capacity for 2026‑27.
Why it matters
The company’s capex outlook directly impacts its ability to meet surging demand for AI accelerators, a key growth driver. Williams’ comments suggest that even with the announced spend, TSMC may not fully eliminate packaging bottlenecks, potentially limiting supply for top customers like Nvidia and AMD.
Short-term and longer-term
Short-term. Over the next few weeks, TSMC’s share price could react to the upcoming full‑year earnings on Oct.
Longer-term. For investors, the key long‑term question is whether TSMC can sustain its leadership in advanced process nodes while expanding packaging to meet AI demand.