Wendell Huang
SVP & CFO, TSMC (TSM)
“Given the continued strong structural demand from our customers, including the newly emerging agentic AI market, we have decided to raise our full year 2026 capital budget to be between $60 billion and $64 billion as we continue to invest heavily to support our customers' growth.”
“About 70%-80% of the 2026 capital budget will be allocated for advanced process technologies. About 10% will be spent for specialty technologies, and about 10%-20% will be spent for advanced packaging, testing, mask making, and others.”
“we expect the steep ramp-up of our 2 nm to dilute our gross margin by about 3 percentage points-4 percentage points in the second half of the year.”
“As the scale of our overseas expansion grows, we continue to forecast the gross margin dilution from the ramp-up of overseas fabs in the next several years to be 2%-3% in the early stages and widen to 3%-4% in the latter stages.”
“We always collaborate closely with the tool suppliers well in advance to prepare the capacity, whether it is a strong upcycle or downcycle... We do not foresee any bottlenecks to our capacity expansion plans.”
Wendell Huang
One-line summary: CFO of TSMC; source for the 2026 capex raise to $60-64B, the 2nm/overseas-fab gross-margin dilution schedule, and the advanced-packaging share of capex.
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Speaker-attributed claims extracted from diarized sources. Each bullet mirrors one entry in quotes: frontmatter — keep them in sync.
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On picks-and-shovels-leading-edge-fab-buildout, semicap-tool-price-inflation:
"Given the continued strong structural demand from our customers, including the newly emerging agentic AI market, we have decided to raise our full year 2026 capital budget to be between $60 billion and $64 billion as we continue to invest heavily to support our customers' growth." — 2026-07-16-earnings-tsm-q2-fy2026 (2026-07-16)
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On cowos-packaging-capacity-crunch, picks-and-shovels-leading-edge-fab-buildout:
"About 70%-80% of the 2026 capital budget will be allocated for advanced process technologies. About 10% will be spent for specialty technologies, and about 10%-20% will be spent for advanced packaging, testing, mask making, and others." — 2026-07-16-earnings-tsm-q2-fy2026 (2026-07-16)
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On tsmc-capacity-shortfall-and-pricing-power:
"we expect the steep ramp-up of our 2 nm to dilute our gross margin by about 3 percentage points-4 percentage points in the second half of the year." — 2026-07-16-earnings-tsm-q2-fy2026 (2026-07-16)
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On us-fab-capacity-bottleneck, taiwan-chokepoint-to-allied-reshoring:
"As the scale of our overseas expansion grows, we continue to forecast the gross margin dilution from the ramp-up of overseas fabs in the next several years to be 2%-3% in the early stages and widen to 3%-4% in the latter stages." — 2026-07-16-earnings-tsm-q2-fy2026 (2026-07-16)
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On picks-and-shovels-leading-edge-fab-buildout:
"We always collaborate closely with the tool suppliers well in advance to prepare the capacity, whether it is a strong upcycle or downcycle... We do not foresee any bottlenecks to our capacity expansion plans." — 2026-07-16-earnings-tsm-q2-fy2026 (2026-07-16)
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