Key takeaways
- TSMC approves up to $1 billion in AI investments
- October revenue surges nearly 60% on chip demand
- Board authorizes $40.9 billion for manufacturing expansion
Taiwan Semiconductor Manufacturing Company (NYSE: TSM) has approved investments totaling up to $1 billion in OpenAI and Anthropic, extending its role in the artificial intelligence industry beyond manufacturing advanced chips.
According to its November 10 board resolutions, TSMC authorized up to $500 million for Anthropic common shares at the company's initial public offering price and another $500 million for preferred stock in OpenAI.
The decision comes as the world's largest contract chipmaker struggles to meet extraordinary AI semiconductor demand, even as a broader AI stock valuation correction raises concerns about the sustainability of infrastructure spending.
TSMC Moves From AI Chip Supplier to Strategic Investor
TSMC manufactures advanced semiconductors used by Nvidia, AMD and other companies building the computing infrastructure behind today's leading AI models.
By purchasing equity in OpenAI and Anthropic, the company could benefit from the growth of AI applications alongside demand for the hardware powering them.
The Anthropic investment would coincide with the Claude developer's proposed public listing, following months of speculation about one of the largest AI IPOs.
Meanwhile, OpenAI's preferred shares would give TSMC exposure to another major developer of advanced AI systems.
The board also approved up to $500 million to establish a separate investment company targeting the semiconductor ecosystem.
That authorization is distinct from the $1 billion allocated to OpenAI and Anthropic.
However, the company has not disclosed final purchase amounts or ownership percentages, and the investments remain subject to execution.
TSMC Revenue Jumps 59.7% as AI Demand Exceeds Supply
The announcement coincided with another record month for TSMC.
Its official October revenue report showed sales of NT$586.89 billion, approximately $17.8 billion, representing 59.7% annual growth and a 14.7% increase from September.
Revenue for the first ten months of 2026 climbed 43.3% to NT$4.49 trillion.
The performance extends the company's strong September sales growth, suggesting demand for advanced manufacturing capacity remains robust.
TSMC previously projected approximately 44% revenue growth for 2026, with fourth-quarter sales expected between $52.3 billion and $54.3 billion.
Its third-quarter earnings showed net income rising 68.7% to NT$763.06 billion.
Despite those results, management has acknowledged that AI demand continues exceeding available manufacturing capacity.
TSMC Approves Nearly $41 Billion for Capacity Expansion
Alongside its AI investments, TSMC authorized approximately $40.93 billion in capital appropriations covering advanced semiconductor manufacturing, packaging capacity, factory construction and 2027 research and development.
The spending supports its broader Arizona manufacturing expansion, where the company has outlined investments totaling $265 billion.
Nevertheless, the strategy introduces additional financial exposure to AI developers already facing scrutiny over their enormous infrastructure commitments.
TSMC shares previously fell sharply despite record earnings, illustrating how investors increasingly distinguish strong semiconductor sales from the valuations attached to the AI boom.
