---
title: "BREAKINGVIEWS-AI bull case gets its biggest booster"
description: "TSMC CEO CC Wei announced a significant increase in capital expenditure by up to 37% to $56 billion, driven by confirmed semiconductor demand from major clients like Google. The company reported a 20."
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/272779095.md"
published_at: "2026-01-16T03:23:30.000Z"
---

# BREAKINGVIEWS-AI bull case gets its biggest booster

> TSMC CEO CC Wei announced a significant increase in capital expenditure by up to 37% to $56 billion, driven by confirmed semiconductor demand from major clients like Google. The company reported a 20.5% revenue increase to T$1.1 trillion for Q4 2022, with earnings rising 35%. Additionally, a new U.S.-Taiwan trade deal will lower tariffs on Taiwanese exports and incentivize local chipmakers to invest $250 billion in U.S. semiconductor production, with Taiwan providing an additional $250 billion in credit for further investments.

(The author is a Reuters Breakingviews columnist. The opinions expressed are her own.)

By Robyn Mak

HONG KONG, Jan 16 (Reuters Breakingviews) - TSMC CEO CC Wei says he’s confirmed semiconductor demand with his customers’ customers – cloud giants like Google. Now he’s raising the $1.4 trln chipmaker’s capex by up to 37%, to $56 bln. The splurge from a firm famed for financial discipline will fuel the AI hype for longer.

Full view will be published shortly. Follow Robyn Mak on X.

CONTEXT NEWS Taiwan Semiconductor Manufacturing (TSMC) on January 15 reported revenue of T$1.1 trillion ($33.2 billion) in the three months to the end of December, an increase of 20.5% from the same period the previous year. Earnings rose 35% to T$505.7 billion. TSMC forecasts 2026 revenue would rise by nearly 30% in U.S. dollar terms and expects capital expenditure to be between $52 billion and $56 billion for the year.

Separately, the U.S. and Taiwan agreed on a trade deal on January 16 that lowers tariffs on the island’s exports to the U.S. to 15% from the current 20%. Taiwanese chipmakers that expand U.S. production will be charged a lower levy on semiconductors or related manufacturing equipment and products they import into the U.S. and can import some duty-free. In exchange, Taiwanese companies will invest $250 billion to increase production of semiconductors, energy and artificial intelligence in the United States. Taiwan will also guarantee an additional $250 billion in credit to facilitate further investment. (Editing by Antony Currie; Production by Ujjaini Dutta)

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.