ARIZONA / RankWire.AI / – Taiwan Semiconductor Manufacturing Co. has pledged an additional $100 billion to expand its advanced chip manufacturing and packaging capabilities in Arizona. This new commitment brings TSMC’s total planned U.S. investment to $265 billion. The company revealed this expansion alongside its second-quarter earnings report on July 16. The initiative includes the construction of four new state-of-the-art semiconductor manufacturing facilities. The U.S. Department of Commerce noted that this expansion increases the total number of manufacturing and packaging facilities nationwide to 12.
TSMC stated that the new sites will feature logic wafer fabs for 2-nanometer and smaller process nodes. The expansion also encompasses advanced packaging facilities for finished semiconductor devices. These processes are crucial for supporting high-performance computing, data centers, smartphones, and other sophisticated electronics. Chairman and CEO C.C. Wei commented that the project aims to meet the demands of leading U.S. clients. He added that the expansion will generate more high-tech jobs and bolster the national semiconductor supply chain.
This latest investment follows TSMC’s earlier plan to invest $165 billion in U.S. facilities. That plan included six chip fabrication plants, two advanced packaging sites, and a research and development center in Arizona. In March 2025, TSMC increased its initial $65 billion commitment by an additional $100 billion. The recent expansion boosts the overall total by another $100 billion. Federal officials have described this program as the largest foreign direct investment commitment in U.S. history.
Expansion of Advanced Manufacturing
The announcement coincided with TSMC reporting record second-quarter earnings. Revenue for the three months ending June 30 reached NT$1.27 trillion, equivalent to $40.2 billion. This marks a 36% increase from the same period a year earlier in Taiwan dollar terms. Net income surged 77.4% to NT$706.56 billion, approximately $22 billion. The company posted diluted earnings of NT$27.25 per share, or $4.31 per American depositary receipt.
Most of TSMC’s wafer revenue during the quarter was driven by advanced chip technologies. Chips manufactured at 7 nanometers or below accounted for 77% of total wafer sales. Specifically, 3-nanometer products contributed 30%, while 5-nanometer chips made up 33%. Chips at 7 nanometers supplied an additional 11%, and 2-nanometer products contributed their first 3%. High-performance computing chips represented 66% of the company’s revenue, increasing by 20% from the previous quarter. Smartphone products accounted for 22% of revenue.
Increased Capital Expenditure
TSMC has raised its capital expenditure forecast for 2026 to a range of $60 billion to $64 billion. Previously, the company projected an upper limit of $56 billion within a $52 billion to $56 billion range. The company intends to allocate 70% to 80% of this year’s capital budget toward advanced process technologies. An additional 10% to 20% will be directed to advanced packaging, testing, mask production, and related areas. About 10% of the planned spending will go toward specialty technologies.
For the third quarter, TSMC anticipates revenue ranging from $44.6 billion to $45.8 billion. The company projects a gross margin of 65% to 67% and an operating margin of 56% to 58%. TSMC also increased its full-year revenue growth forecast to slightly over 40% in U.S. dollar terms. The company continues to develop 13 leading-edge and advanced packaging plants in Taiwan while expanding its manufacturing footprint in Arizona.