TSMC Reports Record $15.59 Billion CapEx in Q2 2026 Amid Rising Gross Margins
Taiwan Semiconductor Manufacturing Company (TSMC) spent a record $15.59 billion on capital expenditures during the June 2026 quarter, marking a 42% increase from the previous quarter and its highest level in eight quarters. This surge reflects TSMC's ongoing investment to scale up production of advanced semiconductor technologies like its 2 nanometer process. Despite concerns about margin dilution due to this ramp-up, TSMC’s gross margins reached an all-time high at 67.7%, driven by strong demand and cost improvements. TSMC has raised its full-year CapEx budget for the third time in 2026, now projecting between $60 billion and $64 billion. The company is funding these investments primarily through operating cash flow rather than debt, with Q2 generating around $24.5 billion in operating cash flow to cover both capital spending and dividends. The stock has seen a valuation contraction due to broader market concerns about AI safety risks, but institutional investors remain divided on TSMC’s outlook.
Tickers: $TSM
Topics: capital expenditure gross margin stock valuation TSMC earnings