TSMC checks US datacenter construction and power supply amid chip capacity push

TSMC scouts US datacenter buildout

TSMC is dispatching personnel to check datacenter construction and power availability in the United States as it plans billions of dollars in additional chipmaking capacity. The Taiwanese chipmaker said the inspections are part of its effort to understand whether the infrastructure housing its chips can keep pace before committing to further expansion.

The checks were discussed during TSMC's third-quarter earnings call, where chairman and CEO C.C. Wei said AI demand continues to outstrip supply, with CPUs for agentic workloads and networking chips adding to the need for silicon. "Therefore, semiconductors will remain essential in the AI mega trend," he said.

Capex of $60 billion to $64 billion

TSMC expects capital expenditure of $60 billion to $64 billion this year, and spending across 2026-2028 is expected to exceed the total for 2023-2025. The company is planning roughly 20 leading-edge manufacturing and advanced-packaging facilities in Taiwan and overseas over the next several years, while also focusing on capacity optimization across production nodes to generate more wafer output.

Wei cautioned that consumer and price-sensitive end market segments are being challenged by rising component prices and macroeconomic uncertainties, prompting prudent business planning going into 2027.

Constraints factored into capacity planning

Asked whether power shortages, datacenter construction delays, advanced-packaging constraints, or limited supplies of high-bandwidth memory could hold back projected growth, Wei said TSMC factors all of these into its capacity planning. He cited discussions about cloud service providers, capex, datacenter build-out, financial conditions, power supply, and other component supply.

"We make our own judgment, and then based on our assessment of the demand, we still think the demand is higher than the supply, and we are working very hard to narrow the gap," he said. He declined to say directly whether wafer supply tightness would be greater next year than this year, describing demand as "extremely robust and getting higher and higher."

Wei also said preparations for A14, TSMC's next-generation 1.4 nm process, are underway. Risk production is scheduled for 2027, followed by volume production in 2028, and he expects A14 to become a bigger business than the current 2 nm generation.

Q3 revenue jumps 41.2 percent

For the quarter ended September 30, 2026, TSMC reported revenue of $46.72 billion, an increase of 41.2 percent on the same period a year earlier. For the fourth quarter, the company expects revenue of between $52.3 billion and $54.3 billion, which at the midpoint would represent roughly 58 percent year-on-year growth.

Sources: The Register