TSMC(US:TSM) Zhi Tong Cai Jing·2026-02-11 13:48Core Viewpoint - The recent approval of a $45 billion capital budget by TSMC's board reflects a strong structural focus on advanced front-end manufacturing processes and large-scale wafer fabrication infrastructure [1][2]. Group 1: Capital Expenditure and Financial Performance - TSMC's board has approved a quarterly dividend of NT$6.0 per share and allocated $45 billion for wafer fabrication, capacity installation, and technology upgrades, covering the entire technology chain from advanced front-end processes to advanced packaging [1]. - The capital expenditure for TSMC is projected to rise significantly, with total capital spending expected to reach between $52 billion and $56 billion in 2026, representing a notable increase of approximately 27% to 37% compared to 2025 [1][2]. - TSMC reported a 37% year-on-year revenue growth in January, reaching NT$401.3 billion (approximately $12.7 billion), exceeding its annual revenue growth forecast of 30% [3]. Group 2: Strategic Focus and Market Position - The capital allocation is heavily skewed towards advanced front-end manufacturing and cleanroom facilities, indicating a strategic response to the increasing demand for high-performance chips driven by artificial intelligence [2]. - TSMC aims to create high capital and technological barriers in front-end manufacturing to widen the gap with competitors like Samsung and Intel, while securing long-term partnerships with key clients such as Nvidia and Apple [2]. - The clear budget structure demonstrates TSMC's strategic resilience in navigating the cyclical nature of the semiconductor industry, with a focus on converting technological advantages into market share [3].