ARIZONA / RankWire.AI / – Taiwan Semiconductor Manufacturing Co. has increased its planned investment in Arizona by $100 billion. This move raises TSMC’s total U.S. investment to $265 billion and includes the development of four new advanced semiconductor fabrication plants. The expansion will bring the total number of manufacturing and packaging facilities operated by the company in the state to 12. TSMC revealed this development alongside its second-quarter financial results on July 16. The initiative is among the largest foreign direct investment commitments in U.S. manufacturing history.
The new facilities will feature logic wafer fabrication plants capable of producing 2-nanometer chips and even smaller process technologies. TSMC also plans to expand its advanced packaging capacity for finished semiconductor products. These technologies are essential for data centers, artificial intelligence applications, smartphones, and other high-performance electronics. TSMC Chairman and CEO C.C. Wei stated that the expansion will cater to major U.S. clients and emphasized its importance for high-tech employment and strengthening the domestic supply chain. The Arizona project remains the core of TSMC’s U.S. manufacturing footprint.
This latest commitment builds upon an existing $165 billion plan announced earlier by TSMC. That initial plan included six fabrication plants, two advanced packaging facilities, and a research center. In March 2025, the company increased its original $65 billion commitment by an additional $100 billion. The recent announcement adds another $100 billion, making it the largest foreign direct investment in U.S. history, according to federal officials. The total investment in manufacturing and packaging excludes the separate research center.
Expansion of Cutting-Edge Chip Production
Alongside the Arizona announcement, TSMC reported record second-quarter earnings. Revenue for the three months ending June 30 reached NT$1.27 trillion, approximately $40.2 billion, marking a 36% increase compared to the previous year in Taiwan dollar terms. Net income surged 77.4% to NT$706.56 billion, roughly $22 billion. Diluted earnings per share were NT$27.25, with each American depositary receipt earning $4.31 on a diluted basis. The results highlighted strong sales from advanced process technologies.
Chips manufactured with 7-nanometer technology or smaller accounted for 77% of wafer revenue. 3-nanometer products contributed 30%, while 5-nanometer chips made up 33%. 7-nanometer chips represented 11%, and 2-nanometer chips contributed their first 3% share of quarterly wafer revenue. High-performance computing accounted for 66% of total revenue after a 20% quarterly increase, while smartphone products added another 22%. The remaining revenue was generated from other platform categories.
Forecast for Increased 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 intends to allocate 70% to 80% of this budget to advanced process technologies. An additional 10% to 20% will be dedicated to advanced packaging, testing, mask production, and related activities, while about 10% will focus on specialty technologies. The updated forecast was announced alongside the company’s quarterly earnings report.
For the third quarter, TSMC anticipates revenues between $44.6 billion and $45.8 billion, with a gross margin projected at 65% to 67%. Operating margins are expected to fall within 56% to 58%. The company also revised 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, with the Arizona expansion significantly enlarging its U.S. manufacturing network.