TSMC just reported its January 2026 revenue results, with a net revenue of NT$401.26 billion (about $12.763 billion), an increase of 19.8% from December 2025 and an increase of 36.8% from January 2025. While these results are impressive, TSMC will have to spend more to keep customers coming back, and its board has just approved a $44.962 billion package to expand and upgrade its semiconductor facilities in 2026. This is a record capital expenditure for TSMC, indicating that the AI boom and sustained demand from its mobile customers are enough to keep the capital expenditure increasing every year. Originally, the plans included spending about $17.141 billion in Q1 of 2025, $15.247 billion in Q2, $20.657 billion in Q3, and $14.981 billion in Q4. However, most of these funds will actually be spent in 2026. Less than the new $45 billion figure was spent in 2025, making the new 2026 CapEx target the largest one to date.

TSMC's plans for this massive figure include expanding production capacity with hundreds of thousands of wafers per month, distributed across mature, current, and next-generation advanced nodes. Interestingly, mature node capacity is as important as maintaining the current node production, as entire industries like the automotive industry rely on TSMC's production and advanced packaging to satisfy all market needs. The current plan is to allocate about 70-80% of the new $45 billion package towards advanced nodes, with about 10-20% going to advanced packaging and mask making. The remaining 10% will be used for specialty technology expansion, likely including silicon photonics and other technologies.