ARIZONA / RankWire.AI / – Taiwan Semiconductor Manufacturing Co. has increased its planned investment in Arizona by $100 billion. This boost brings TSMC’s total U.S. investment to $265 billion and includes the construction of four new advanced semiconductor manufacturing plants. The expansion will raise the company’s total number of manufacturing and packaging sites in the state to 12. TSMC announced this development together with its second-quarter earnings report on July 16. The project ranks among the most substantial foreign investment commitments in U.S. manufacturing history.
The new facilities will feature logic wafer fabrication plants capable of producing 2-nanometer chips and smaller process technologies. TSMC also intends to expand its advanced packaging capacity for completed semiconductor devices. These innovations support applications in data centers, artificial intelligence, smartphones, and other high-performance electronics. Chairman and CEO C.C. Wei stated that the expansion will cater to major U.S. clients. He also emphasized the project’s importance for high-tech employment and strengthening the domestic supply chain. The Arizona site remains the core of TSMC’s U.S. manufacturing footprint.
This latest commitment complements a previously announced $165 billion plan, which included six fabrication plants, two advanced packaging facilities, and a research center. In March 2025, TSMC elevated its initial $65 billion pledge by an additional $100 billion. The recent announcement adds another $100 billion to the overall sum. Federal officials described the combined program as the largest foreign direct investment ever made in the U.S. manufacturing sector. The figures for manufacturing and packaging exclude the separate research center.
Expansion of advanced chip manufacturing
TSMC announced its Arizona expansion alongside record-breaking second-quarter results. Revenue hit NT$1.27 trillion, equivalent to $40.2 billion, for the quarter ending June 30. This represents a 36% increase compared to the same period last year in Taiwan dollar terms. Net income surged 77.4% to NT$706.56 billion, approximately $22 billion. Diluted earnings per share stood at NT$27.25, with each American depositary receipt earning $4.31 on a diluted basis. The strong financials were driven by high sales of advanced process technologies.
Products manufactured with 7-nanometer technology or smaller accounted for 77% of wafer revenue. Three-nanometer chips contributed 30%, while 5-nanometer components supplied 33%. Seven-nanometer products made up 11%. Notably, two-nanometer chips contributed their first 3% of quarterly wafer revenue. High-performance computing accounted for 66% of total revenue after a 20% quarterly growth, with smartphone products contributing an additional 22%. The remaining revenue was generated by other platform categories.
Forecasted increase in capital expenditure
TSMC has raised its capital expenditure forecast for 2026 to a range of $60 billion to $64 billion, up from the previous estimate of $52 billion to $56 billion. The company plans to allocate approximately 70% to 80% of this budget to advanced process technologies, while 10% to 20% will go toward advanced packaging, testing, mask production, and related activities. About 10% will be dedicated to specialized technologies. The updated forecast was announced with the company’s quarterly earnings report.
For the third quarter, TSMC expects revenue between $44.6 billion and $45.8 billion, with a gross margin range of 65% to 67%. The operating margin is projected to be between 56% and 58%. The company also raised its full-year revenue growth outlook to slightly above 40% in U.S. dollar terms. Meanwhile, TSMC continues to develop 13 leading-edge and advanced packaging plants in Taiwan. The Arizona expansion enhances its U.S. manufacturing infrastructure.