TSMC to Increase Capital Expenditure to $56 Billion in 2026, Positive for ASML
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 22 2026
0mins
Should l Buy ASML?
Source: NASDAQ.COM
- Capital Expenditure Growth: TSMC anticipates its capital expenditure for 2026 to range between $52 billion and $56 billion, representing a 33% increase from the midpoint of $40.9 billion in 2025, indicating a strong commitment to advanced process technologies and reinforcing its leadership in the semiconductor industry.
- Surge in AI Chip Demand: TSMC expects revenue from AI data center chips to grow at a mid- to high-50% compound annual growth rate through 2029, prompting the company to allocate 70% to 80% of its capital expenditure towards advanced process technologies to meet the rising demand for high-performance chips.
- ASML Stock Surge: Following TSMC's quarterly results exceeding expectations, ASML's stock jumped over 6% on January 15, reflecting market optimism about its future growth, particularly in light of TSMC's increased capital expenditure.
- Deepening Technological Dependence: TSMC will rely on ASML's extreme ultraviolet (EUV) lithography machines to enhance production capabilities for its 2nm and 3nm nodes, which is likely to drive ASML's performance growth and could lead to better-than-expected results in 2026, further solidifying its market position.
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Analyst Views on ASML
Wall Street analysts forecast ASML stock price to rise
12 Analyst Rating
12 Buy
0 Hold
0 Sell
Strong Buy
Current: 1359.760
Low
1385
Averages
1583
High
1911
Current: 1359.760
Low
1385
Averages
1583
High
1911
About ASML
ASML Holding N.V. is a holding company based in the Netherlands. The Company operates through its subsidiaries in the Netherlands, the United States, Italy, France, Germany, the United Kingdom, Ireland, Belgium, South Korea, Taiwan, Singapore, China, Hong Kong, Japan, Malaysia and Israel. The Company operates through one business segment which is engage in development, production, marketing, sales, upgrading and servicing of advanced semiconductor equipment systems, consisting of lithography, metrology and inspection systems. The Company offers TWINSCAN systems, equipped with lithography system with a mercury lamp as light source (i-line), Krypton Fluoride (KrF) and Argon Fluoride (ArF) light sources for processing wafers for manufacturing environments for which imaging at a small resolution is required. TWINSCAN systems also include immersion lithography systems (TWINSCAN immersion systems).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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