TSMC’s board approved a whopping $41 billion in capital spending, and Bank of America promptly raised its forecast for 2027 spending to $90 billion. Advanced processes account for 56% of the total, their highest share in several years, as capacity for both 3nm and 2nm chips is being rapidly expanded.
With spending this aggressive, the stock still fell less than 2% in premarket trading. The broader computing-power supply chain was sold off today, and no one dares to guarantee demand next year. But foundry prices are set to rise next year, and TSMC still has capacity under its own control—doesn’t that look like a pretty solid hand?
With spending this aggressive, the stock still fell less than 2% in premarket trading. The broader computing-power supply chain was sold off today, and no one dares to guarantee demand next year. But foundry prices are set to rise next year, and TSMC still has capacity under its own control—doesn’t that look like a pretty solid hand?