TSMC Earnings Surpass Estimates Amid $250 Billion US Investment Deal
TSMC reports a 35% profit jump and commits $250 billion to U.S. investment as part of a major trade deal lowering tariffs to 15%.
While geopolitical tensions simmer in Greenland and Iran, the markets found a $250 billion reason to cheer. TSMC's latest earnings aren't just a win for the tech giant; they're the centerpiece of a massive new trade pact with Washington.
TSMC Earnings: 35% Profit Jump and 2026 Capex Hike
The world's leading contract chipmaker posted a staggering 35% increase in fourth-quarter profit, marking its eighth consecutive quarter of year-over-year growth. TSMC also raised its expected capital expenditure for 2026, signaling that the global hunger for AI infrastructure hasn't slowed down.
In a move that solidifies the U.S.-Taiwan tech alliance, Taiwan has committed to investing at least $250 billion in U.S. production capacity. Commerce Secretary Howard Lutnick confirmed to CNBC that TSMC is looking to further expand its footprint in Arizona.
Trade Incentives and Geopolitical Headwinds
The investment deal comes with significant sweeteners. The U.S. will lower tariffs on Taiwanese imports to 15% from 20%, with some sectors like generic pharmaceuticals seeing duties removed entirely. This wave of optimism propelled shares of Nvidia, AMD, and Applied Materials higher, lifting major indexes.
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