As the world's leading semiconductor company, Taiwan Semiconductor Manufacturing Company (TSMC) is planning a significant increase in its spending to achieve volume production of its cutting-edge 1.6nm chips by 2026. This move is expected to lead to substantial revenue growth for the company.

In preparation for the 1.6nm chips, TSMC is also planning to increase production of its 2nm chips throughout 2024. The company has reported its Q4 earnings, showing a year-on-year revenue increase of up to 37% to $26.88 billion. However, it anticipates a slight drop of 5.5% due to smartphone seasonality.

Despite these challenges, TSMC remains optimistic about its growth prospects. Vice Chairman and CEO C.C. Wei has stated that TSMC expects 2025 to be another year of substantial growth, with an internal forecast of approximately 20% revenue increase.

In terms of its technological roadmap, TSMC is on track to begin volume production of its 2nm node in the second half of 2025. This new node is expected to offer a 10-15% speed improvement or a 20-20% power improvement at the same speed, while increasing density by more than 15%. The 1.6nm chips, scheduled for production by 2026, are expected to provide an 8-10% speed improvement at the same power and an additional 7-10% density improvement compared to the 2nm chips.