TSMC to invest up to $500 million each in Anthropic non-voting common stock and OpenAI preferred shares. The board also approved approximately $40.9 billion in capital expenditure for advanced processes and packaging, alongside plans to establish a new investment vehicle.
Taiwanese semiconductor foundry giant TSMC has announced plans to invest up to $1 billion in AI developers OpenAI and Anthropic. While the investment represents only about 2% of the company's concurrently approved capital expenditure, the move is significant as it marks the transition of the world's leading chip manufacturer into a shareholder of the firms utilizing its AI semiconductors.
According to a board resolution and a filing with the U.S. Securities and Exchange Commission (SEC) on the 10th (local time), TSMC has approved the acquisition of Anthropic common stock and OpenAI preferred shares, with a cap of $500 million for each entity.
The investment in Anthropic is tied to its ongoing public offering process. In an amended registration statement filed today, Anthropic proposed an initial public offering price range of $70 to $78 per share. TSMC intends to acquire approximately $500 million worth of Class N common stock at the final offering price through its subsidiary, TSMC Partners. The final number of shares acquired will depend on the determined offering price.
Class N shares are generally non-voting common stock issued via private placement, separate from the public offering. The acquisition is scheduled to occur immediately following the completion of the public offering, subject to customary closing conditions.
As a primary manufacturing partner for chip designers like Nvidia, TSMC has been instrumental in producing the hardware required for AI infrastructure. By becoming a shareholder in these AI developers, TSMC stands to benefit not only from manufacturing revenue generated by chip orders but also from the potential valuation growth of these companies.
Collaboration between AI developers and semiconductor firms is expanding into chip design and supply. Last October, OpenAI announced plans to develop and deploy its own AI accelerators in partnership with Broadcom. As AI developers take a more direct role in the design and procurement of computing hardware, TSMC’s equity participation serves to deepen its strategic relationships with these key players.
This investment comes amid robust growth in TSMC’s core business. The company reported third-quarter revenue of $46.72 billion, a 41.2% increase year-over-year. TSMC projects a 44% rise in annual revenue for this year. CFO Wendell Huang noted that strong demand for advanced processes has bolstered performance, with expectations that this momentum, coupled with the expansion of 2nm process production, will drive growth in the fourth quarter.
The company is also aggressively expanding its production capacity. The board approved a capital expenditure plan of approximately $40.9 billion to secure long-term capacity in line with market demand and technological roadmaps. The $1 billion allocated for the two AI firms represents roughly 2.4% of this total.
The capital expenditure is primarily earmarked for the installation and improvement of advanced process and packaging facilities, as well as new plant construction. It also includes R&D-related investments and maintenance budgets through 2027. Additionally, the board approved the establishment of an investment vehicle with up to $500 million in capital to make strategic investments in the semiconductor ecosystem.
While the investment has received board approval, the acquisition of Anthropic shares remains subject to the completion of the public offering and other conditions. Details regarding the execution schedule and specific terms of the OpenAI preferred shares have not been disclosed. Although no new supply contracts were announced alongside the investment, the move solidifies TSMC’s dual role as both a critical manufacturer of AI semiconductors and a strategic stakeholder in the industry's leading AI developers.
