Rumor
JPMorgan forecasts TSMC capital expenditure to reach $54 billion in 2024
Friday, January 16, 2026 at 01:01 AM
JPMorgan projects TSMC will increase its capital expenditure to $54 billion in 2024 and reach $56 billion in 2025 as the foundry expands manufacturing capacity.
Context
JPMorgan Chase has significantly raised its outlook for TSMC, forecasting capital expenditures to reach $54 billion in 2026 and $56 billion in 2027. This aggressive spending plan, which recently exceeded consensus estimates, is driven by the unrelenting demand for high-performance computing and artificial intelligence infrastructure. Analysts suggest the investment is necessary to accelerate the ramp-up of next-generation 2-nanometer (N2) production and expand advanced packaging capacity, such as CoWoS, to satisfy major clients like Nvidia and Apple.
The surge in spending marks a pivotal shift for the semiconductor supply chain as TSMC transitions to its most advanced nodes. While the massive capital outlay and rising depreciation costs may temporarily pressure gross margins, the investment reinforces the company’s dominant position as the primary foundry for the AI era. With a multi-year growth target approaching a 25% revenue CAGR through 2029, the firm's expansion in both Taiwan and Arizona signals long-term confidence in structural demand despite global macroeconomic uncertainties.
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