ARIZONA / RankWire.AI / – Taiwan Semiconductor Manufacturing Co. has committed an additional $100 billion to its planned investment in Arizona. This move brings TSMC’s total U.S. investment to $265 billion and will see the addition of four new advanced semiconductor manufacturing facilities. The expansion aims to boost the company’s manufacturing and packaging sites in the state to a total of 12. TSMC revealed this development alongside its second-quarter financial report on July 16. The project stands among the largest foreign investment commitments in U.S. manufacturing history.
The new facilities will feature logic wafer plants capable of producing 2-nanometer chips and smaller process nodes. TSMC also intends to expand its advanced packaging capacity for finished semiconductor products. These technologies are crucial for data centers, artificial intelligence systems, smartphones, and other high-performance electronics. Chairman and CEO C.C. Wei stated that the expansion will serve major U.S. clients and linked the project to high-tech job growth and strengthening the domestic supply chain. The Arizona facilities remain at the heart of TSMC’s U.S. manufacturing footprint.
This latest pledge builds upon an already announced $165 billion plan, which included six fabrication plants, two advanced packaging facilities, and a research center. In March 2025, TSMC increased its initial $65 billion commitment by an additional $100 billion. The recent announcement adds another $100 billion, making the total program the largest foreign direct investment in U.S. history, according to federal officials. The total excludes the separate research center component.
Expansion of advanced semiconductor production
TSMC paired the Arizona expansion news with record-breaking second-quarter results, reporting revenue of NT$1.27 trillion, or $40.2 billion, for the quarter ending June 30. This represented a 36% increase year-over-year in Taiwan dollar terms. Net income surged 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 results were driven by strong sales from advanced process technologies.
Chips manufactured with 7-nanometer technology or below accounted for 77% of wafer revenue. Three-nanometer chips contributed 30%, while 5-nanometer chips supplied 33%. Seven-nanometer products made up 11%, and two-nanometer chips contributed their first 3% to quarterly wafer revenue. High-performance computing accounted for 66% of total revenue, up 20% quarter-over-quarter. Smartphone chips contributed another 22%, with the remaining revenue from other segments.
Increased capital expenditure projections
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 technology development, with 10% to 20% dedicated to advanced packaging, testing, mask production, and related activities. About 10% will go toward specialty technologies. This revised forecast was announced alongside 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 of 65% to 67%. Operating margin is projected to be in the 56% to 58% range. The company also increased its full-year revenue growth outlook to slightly over 40% in U.S. dollar terms. Meanwhile, TSMC continues to develop 13 leading-edge and advanced packaging plants in Taiwan, and the Arizona expansion significantly expands its U.S. manufacturing network.