Rumor

TSMC projected to reach 75 billion dollars in annual CapEx by 2028 for advanced nodes

Wednesday, February 25, 2026 at 01:14 AM

TSMC is projected to significantly increase its capital expenditure in the coming years to support advanced logic and packaging capacity. UBS has raised its CapEx forecasts for TSMC to $65 billion for 2027 and $75 billion for 2028, driven by sustained AI computing demand from cloud service providers. While total spending is rising, capital intensity is expected to remain manageable, potentially decreasing to 29% by 2028 as revenue from advanced nodes grows. Other firms like Morgan Stanley and Citigroup also anticipate CapEx reaching or exceeding $60 billion by 2027.

Context

TSMC is entering a massive multi-year "capex supercycle" to meet insatiable demand for next-generation artificial intelligence processors. The foundry is aggressively scaling production for its 3nm, 2nm, and A16 nodes while rapidly expanding CoWoS advanced packaging capacity to address critical supply bottlenecks for AI accelerators. This global roadmap includes the buildout of advanced "gigafab" clusters across Taiwan and the United States, securing TSMC’s position as the primary enabler of the AI infrastructure race. Investment banks have significantly raised their long-term forecasts to reflect this sustained spending momentum. Citi and Morgan Stanley now project annual capital expenditure to reach $60 billion by 2027, while GF Securities and UBS anticipate even higher peaks of $64 billion and $65 billion, respectively. This historic outlay serves as a major tailwind for the broader equipment ecosystem, specifically benefiting ASML, Applied Materials, Lam Research, and KLA as the industry shifts toward high-intensity lithography and advanced deposition tools.

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