Key Points

• TSMC approves an investment of up to $1 billion in AI
• October revenue soared by nearly 60% year-on-year driven by chip demand
• The board of directors authorized $40.93 billion for manufacturing expansion.

Taiwan Semiconductor Manufacturing Co., Ltd. ( NYSE : TSM ) has approved investments of up to $1 billion in total, to be allocated to OpenAI and Anthropic respectively. This means that in addition to advanced chip manufacturing, this world's largest wafer foundry is also extending its role to become a strategic investor in the artificial intelligence industry.

According to the board of directors resolution on November 10th, TSMC was authorized up to $500 million to subscribe for the company's common shares at the initial public offering price of Anthropic; an additional $500 million will be used for the preferred shares of OpenAI.

This decision comes at a time when the world's largest contract chip manufacturer is striving to meet the exceptionally strong demand for AI semiconductors. Meanwhile, a broader correction in the valuation of AI stocks has also raised concerns about the sustainability of infrastructure spending in the market.

TSMC shifts from being a chip supplier at AI to a strategic investor

TSMC produces advanced semiconductors, which are used by NVIDIA, AMD, and other companies that build the computing infrastructure for today's leading AI models.

By purchasing the equity of OpenAI and Anthropic, the company may benefit from the growth of AI applications, as well as share in the increasing demand for hardware that supports these applications.

The investment in Anthropic will be carried out simultaneously with the listing proposed by the developer of Claude. For months prior to this, the market has been speculating about this transaction, which could become one of the largest of its kind involving AI IPO.

At the same time, the preferred stocks of OpenAI will enable TSMC to gain access to another advanced AI system developer.

The board of directors also approved up to $500 million to establish an independent investment company, with a focus on the semiconductor ecosystem.

This authorization is different from the $1 billion allocated to OpenAI and Anthropic.

However, the company has not yet disclosed the final purchase amount or shareholding percentage, and these investments are still subject to actual execution.

AI Demand exceeds supply, TSMC's revenue grew by 59.7% in October

As this announcement is made, TSMC once again experiences a record-breaking month.

The company announced revenue of NT$586.89 billion in October, which is approximately $17.8 billion, representing a year-on-year increase of 59.7% and a growth of 14.7% compared to September.

In the first 10 months of 2026, revenue totaled NT$4.49 trillion, a year-on-year increase of 43.3%.

This performance continues the strong growth in sales seen in September, indicating that the demand for advanced manufacturing capacity remains robust.

TSMC previously estimated that its revenue would grow by about 44% in 2026, with fourth-quarter sales expected to be between $52.3 billion and $54.3 billion.

The company's third-quarter financial report shows that net profit increased by 68.7% to NT$763.06 billion.

Despite strong performance, management has acknowledged that the demand for AI continues to exceed the available manufacturing capacity.

TSMC approves nearly $41 billion for capacity expansion

In addition to the AI investment, TSMC also approved approximately $40.93 billion in capital expenditures for advanced semiconductor manufacturing, packaging capacity, factory construction, and research and development for 2027.

This expenditure will support its broader manufacturing expansion in Arizona, with the company previously disclosing a total investment of $265 billion in related projects.

However, this strategy also exposes the company to additional financial risks associated with the AI developers, who are already under scrutiny due to their substantial infrastructure commitments.

TSMC's stock price had previously tumbled significantly after recording record profits, which indicates that investors are increasingly distinguishing between strong semiconductor sales and the valuation associated with the AI craze.