Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) is accelerating its AI-driven expansion as surging demand for advanced semiconductors pushes the company to ramp up production capacity worldwide.

Taiwan Semiconductor Expands AI Chip Production

Taiwan Semiconductor's board approved about $31.28 billion in capital spending to expand advanced chip manufacturing capacity, construct new fabs and install facility systems to support rising demand for AI, 5G and high-performance computing chips.

The company also approved up to $20 billion in additional investment for its wholly owned Arizona subsidiary, deepening its long-term U.S. expansion strategy.

Taiwan Semiconductor previously said it expects 2026 capital spending to land near the high end of its projected $52 billion to $56 billion range, driven by robust customer demand for AI infrastructure and advanced-node chips.

Raises Dividend As Revenue Surges

Taiwan Semiconductor also approved its first-quarter 2026 financial results. The company reported consolidated revenue of 1.13 trillion New Taiwan dollars and net income of 572.48 billion New Taiwan dollars. Diluted earnings per share came in at 22.08 New Taiwan dollars.

The results underscore continued strength in demand for advanced semiconductors ...