In November, NVIDIA's CEO, Jensen Huang, paid a visit to TSMC, where both parties engaged in in - depth discussions regarding the burgeoning demand for cutting - edge AI chips. This meeting has ignited a fresh surge of factory - building fervor at TSMC.

TSMC has promptly urged its upstream equipment suppliers to significantly shorten delivery cycles. This move has effectively catapulted the entire supply chain into what can be described as a 'wartime state.' It is anticipated that high - intensity shipments will persist uninterrupted until the second quarter of 2026.

In a bid to meet the soaring demand, TSMC is undertaking an extensive factory - construction spree in key locations such as Hsinchu and Kaohsiung. The construction projects encompass a wide range of initiatives, including the establishment of 2 - nanometer production lines, the expansion of existing 2 - nanometer production capacity, the acceleration of 3 - nanometer processes, the commencement of construction for a 1.4 - nanometer plant, and the expansion of capacity for 'advanced packaging' technologies.

Moreover, TSMC's business operations in the United States are also in full swing. Its first wafer fab in Arizona has already commenced mass production, and two additional fabs are currently under construction.

Industry experts have made the projection that TSMC's capital expenditures in the upcoming year will fall within the range of US$48 billion to US$50 billion. This substantial investment is aimed at bolstering its capacity expansion plans and ensuring that the semiconductor equipment supply chain operates at maximum capacity until 2026.