TSMC has approved a $45 billion capital expenditure plan for 2026 - its largest ever - to dramatically expand chipmaking capacity. The investment comes as the foundry reports NT$401.26 billion ($12.76 billion) in January revenue, a 36.8% annual increase driven by AI processors and mobile device demand.

The bulk of spending (70-80%) will target advanced nodes like future A10-class 1nm technologies, while 10-20% funds advanced packaging for AI accelerators. Surprisingly, mature node expansion remains a priority to support automotive clients still reliant on older process chips. TSMC simultaneously promoted R&D lead S.S. Lin to VP after his work on angstrom-scale semiconductor breakthroughs.

This record outlay reflects the strain of supplying both cutting-edge AI chips and legacy components. While rivals focus solely on next-gen nodes, TSMC must maintain older production lines for carmakers and industrial clients. The dual-track strategy complicates expansion but secures dominance across multiple tech sectors.