TSMC Earnings Set to Jump as Investors Watch Terafab and Texas Plans

what happened

Taiwan Semiconductor Manufacturing will publish its quarterly results before the US market opens on Thursday, Barron's reports. The key question for investors is whether the chipmaker is ready for another large American investment. TSMC has been regularly posting record figures as it benefits from the boom in artificial intelligence. It is the main chip supplier to Nvidia and also makes processors for Apple, AMD and Broadcom.

Monthly sales data already showed third-quarter revenue up 51% to 1.49 trillion New Taiwan dollars ($46.7 billion), ahead of earlier expectations. A FactSet poll estimates quarterly net profit rose about 63% year on year to NT$736.92 billion. TSMC has forecast 2026 revenue growth of more than 40%.

Attention is on a possible second manufacturing hub in Texas, which Reuters and Taiwanese media have reported. Elon Musk has said he has held talks with TSMC about his Terafab operation, which is designed to make chips for Tesla and SpaceX, including the possibility of subleasing part of the site.

why it matters

A Texas expansion would be another major commitment for TSMC, which has already pledged $265 billion in US investment, mainly through its Arizona project. It could also push capital spending above the $60 billion to $64 billion range forecast for this year. Competition is rising as Intel, which has US government backing, seeks to win major foundry customers. TSMC's US-listed shares fell 1.9% on Wednesday, after gaining 46% this year through Tuesday's close.

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