Taiwan Semiconductor Manufacturing Co. kept its 2026 investment plan at up to $64 billion, as equipment constraints complicate efforts to expand chip output amid strong demand.
ASML sold 113 new lithography systems in the third quarter, up from 86 in the prior quarter, while its gross margin advanced to 57.5% from 54%. The company also recorded a quarterly revenue high, about 25% above the previous quarter, and higher net income. Work on equipment already operating at customer sites also strengthened. ASML said demand for productivity upgrades supported its installed-base management business and helped lift gross margin above expectations.
ASML said its current capacity plans would leave some customer demand unmet in 2027 and 2028. It is assessing whether to expand beyond the 30% capacity increase it had previously communicated for 2028. Some customers have signaled interest in equipment for 2029 and 2030, but those are not confirmed orders. ASML expects a gross margin near 57% in the fourth quarter and about 56% for full-year 2026, alongside a higher annual revenue outlook.
TSMC reported third-quarter revenue of $46.72 billion, up 41.2% from a year earlier. TSMC's fourth-quarter revenue forecast was $52.3 billion to $54.3 billion, with demand for advanced processes and a quick 2-nanometer ramp expected to support results. TSMC's 2026 investment range remains $60 billion to $64 billion; its planned total for 2026-28 is expected to top what it spent over the preceding three years.
TSMC said equipment supplies were tight and that it needed to coordinate with suppliers early. It also described higher component costs and economic uncertainty as pressures on consumer and price-sensitive markets, and said it was taking a cautious approach to 2027 planning. EconoTimes previously reported on TSMC's revenue outlook and expansion-related margin pressures.
ASML supplies equipment to multiple chipmakers, while TSMC's budget covers its own investment program. ASML's demand outlook does not establish TSMC's orders or market share, and TSMC's spending plan does not show how much added capacity will be used. Neither company's figures report earnings attributable to AI applications. The companies' near-term benchmarks are ASML's fourth-quarter margin forecast and TSMC's fourth-quarter revenue range.
