ARIZONA / RankWire.AI / – Taiwan Semiconductor Manufacturing Co. has increased its planned investment in Arizona by an additional $100 billion. This move elevates TSMC’s total U.S. investment to $265 billion and includes the development of four new advanced semiconductor fabrication facilities. The expansion aims to boost the company’s manufacturing and packaging sites in the state to a total of 12. TSMC revealed this initiative alongside its second-quarter financial earnings on July 16. The project stands among the largest foreign direct investment commitments in U.S. manufacturing history.
The new facilities will feature logic wafer fabs dedicated to 2-nanometer chips and smaller process nodes. TSMC also intends to expand its high-end packaging capabilities for finished semiconductor products. These technologies cater to data centers, artificial intelligence systems, smartphones, and other high-performance electronics. Chairman and CEO C.C. Wei stated that the expansion will support major U.S. clients and linked the project to creating high-tech jobs and strengthening the domestic supply chain. The Arizona project continues to be the core of TSMC’s U.S. manufacturing footprint.
This latest commitment builds upon an already announced $165 billion plan that covered six fabrication plants, two advanced packaging facilities, and a research center. In March 2025, TSMC increased its original $65 billion commitment by an additional $100 billion. The recent announcement adds another $100 billion, bringing the total to the largest foreign direct investment in U.S. history, according to federal officials. The total excludes the separate research center, focusing solely on manufacturing and packaging facilities.
Expansion of advanced semiconductor manufacturing
TSMC paired its Arizona expansion announcement with record second-quarter results. Revenue for the three months ending June 30 reached NT$1.27 trillion, or $40.2 billion, representing a 36% increase from the previous year in Taiwan dollar terms. Net income soared 77.4% to NT$706.56 billion, approximately $22 billion. Diluted earnings per share were NT$27.25, with each American depositary receipt earning $4.31 on a diluted basis. The quarter’s results were driven by strong sales of advanced process technologies.
Chips produced with 7-nanometer technology or smaller made up 77% of wafer revenue. Three-nanometer chips contributed 30%, while 5-nanometer chips accounted for 33%. Seven-nanometer products represented 11%, and two-nanometer chips contributed their first 3% share of quarterly wafer revenue. High-performance computing chips generated 66% of total revenue after a 20% quarter-over-quarter growth, with smartphone chips adding another 22%. The remaining revenue came from other product segments.
Increase in capital expenditure forecast
TSMC raised its 2026 capital spending estimate to a range of $60 billion to $64 billion, up from the previous forecast of $52 billion to $56 billion. The company plans to allocate 70% to 80% of this budget to advanced process technologies. Additionally, 10% to 20% will go toward advanced packaging, testing, mask production, and related activities, with about 10% dedicated to specialty technologies. This updated forecast was disclosed alongside the company’s quarterly earnings report.
For the third quarter, TSMC projects revenue between $44.6 billion and $45.8 billion, with a gross margin between 65% and 67%. Operating margin is expected to be between 56% and 58%. The company also increased its full-year revenue growth outlook to just above 40% in U.S. dollar terms. Meanwhile, TSMC continues to develop 13 advanced and leading-edge packaging plants in Taiwan. The Arizona expansion enhances the company’s manufacturing presence in the U.S., complementing its existing network.