TSMC Shares Hit Record High Ahead of Earnings Release

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Shares of Taiwan Semiconductor Manufacturing Company (TSMC) reached a new 52-week peak of $331.77 on Monday. This surge in equity value arrives just days before the chipmaking giant’s highly anticipated quarterly results, scheduled for January 15. The momentum is being fueled by clear signals of a major expansion push in the United States, supported by recent land acquisitions and reports of potential trade negotiations.

TSMC’s American strategy is gaining significant traction. On January 12, the company secured approximately 900 hectares of state-owned land north of Phoenix, Arizona, for about $200 million. This acquisition is intended to bolster its already-announced $165 billion investment plan for the region. The site is slated to host six semiconductor fabrication plants, advanced packaging facilities, and a research center, underscoring TSMC’s commitment to accelerating its U.S. operations despite higher overseas construction costs.

Further developments emerged on January 13. Reports indicate the Trump administration is engaged in trade talks with Taiwan, which could potentially reduce U.S. tariffs on Taiwanese imports to 15%. In a related move, TSMC is reportedly prepared to commit to building at least four additional fabrication plants in Arizona, supplementing the six already confirmed. These new facilities, potentially operational in the 2030s, could represent a further $100 billion in capital expenditure.

Production and Market Dominance in Focus

Concurrently, TSMC has initiated volume production of its cutting-edge 2-nanometer (N2) process technology. Industry analysis points to a potential supply shortfall for these advanced chips by 2026, driven by massive capacity reservations from key clients like Nvidia and Apple. In response, the company plans to scale its monthly production capacity to 100,000 wafers. Holding a dominant share of the advanced logic chip market with manufacturing yields around 70%—substantially higher than Samsung’s 40-55%—TSMC commands significant pricing power.

All Eyes on Thursday’s Earnings Report

The market’s immediate focus is on TSMC’s fourth-quarter 2025 financial release on January 15. Market experts project a 27% jump in net profit to $15.02 billion, alongside a 22% revenue increase to $32.74 billion. However, forward guidance for 2026 may carry even greater weight. Investment bank IDC recently raised its forecast, predicting TSMC’s revenue will grow 25% to 30% next year. This optimism is largely tied to an anticipated 78% surge in demand for AI servers. Current options market pricing suggests investors are bracing for a share price movement exceeding 5% following the earnings announcement.