[News] TSMC Lifts 2026 Capex 15% to $60-64B, Hikes Sales Outlook to Over 40% Despite Q3 Margin Dip
After posting new high net profit in the second quarter, TSMC management projects 3Q26 revenue to land between $44.6 billion and $45.8 billion, representing a year-over-year increase of approximately 37% and a sequential gain of around 12%.
In terms of profitability, based on an assumed exchange rate of 1 USD to 32 TWD, TSMC expects its gross margin to trend down to 65%–67%, while its operating margin is projected to land between 56% and 58%.
Notably, TSMC is aggressively lifting its 2026 capital expenditure guidance to US$60–64 billion—a significant bump from its prior US$52–56 billion forecast. This massive budget hike underscores the company’s laser focus on scaling capacity for 5G, AI, and High-Performance Computing (HPC), company management said.
On the flip side, the chipmaking colossus is supercharging its full-year guidance, raising the bar to over 40% revenue growth in USD terms, up significantly from the previous 30% projection.
According to CFO Wendell Huang, TSMC expect Q3 gross margin to trend down. This is primarily due to the steep ramp-up of the 2nm technology, which is anticipated to cause a 3% to 4% margin dilution.
Additionally, due to TSMC global footprint expansion, the gross margin dilution from ramping up overseas fabs is projected to be 2% to 3% in the early stages and widen to 3% to 4% in the latter stages, Huang said.
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(Photo credit: TSMC)
