TSMC is pouring more money into chip production as AI demand keeps climbing, a clear positive for Taiwan's tech sector even as Nvidia wobbles on unrelated controversy.

• TSMC's board approved a new capital budget of about $41 billion (roughly NT$1.3 trillion) to build and upgrade advanced chipmaking, advanced packaging, and specialty process capacity, plus 2027 R&D spending.
• The company expects 2026 capital spending of $60–64 billion, and says 2026–2028 investment will rise sharply from the past three years, driven by strong multi-year demand including agentic AI customers.
• TSMC's board also raised the third-quarter dividend to a record high per share.
• Separately, Nvidia shares steadied and tech stocks bounced back after CEO Jensen Huang admitted to an affair with a Chinese businesswoman and the company said it is investigating whether he was targeted by a foreign intelligence operation; analysts say the fallout could still pressure Nvidia's stock and even put Huang's job at risk, though supply chain sources say the impact on Taiwan's chip suppliers should be limited since AI chip demand remains intact.
• Taiwan's stock market jumped to its second-highest close ever, helped by a state stabilization fund, even as foreign investors kept selling for an eighth straight day; Taiwan's central bank governor said recent foreign outflows are just investors moving profits abroad, not a warning sign.
• Taiwan's exports are on track to hit record highs this year, likely overtaking Japan's and climbing toward 7th place in global rankings.

Outlook: AI-driven chip demand looks set to keep supporting Taiwan's economy and stock market, though Nvidia's leadership controversy and foreign fund outflows remain things to watch.