ARIZONA / RankWire.AI / – Taiwan Semiconductor Manufacturing Co. has committed an additional $100 billion to enhance advanced chip fabrication and packaging operations in Arizona. This new commitment brings TSMC’s total planned U.S. investment to $265 billion. The expansion was announced alongside its second-quarter financial results on July 16. The plan includes the development of four new state-of-the-art semiconductor manufacturing plants. The U.S. Department of Commerce stated that this increases the total number of manufacturing and packaging facilities nationwide to 12.
TSMC indicated that the new facilities will feature logic wafer plants for 2-nanometer and smaller process nodes. The initiative also encompasses advanced packaging plants for finished semiconductor products. These facilities support high-performance computing, data centers, smartphones, and other cutting-edge electronic devices. Chairman and CEO C.C. Wei mentioned that the project aims to meet the demands of leading U.S. clients. He added that the expansion will create more high-tech jobs and bolster the domestic semiconductor supply chain.
This latest commitment follows TSMC’s previous plan to invest $165 billion in the U.S., which included six chip fabrication plants, two advanced packaging facilities, and a research and development center in Arizona. In March 2025, TSMC increased its initial $65 billion pledge by an additional $100 billion. The new investment further raises the total commitment by another $100 billion. Federal officials described the expanded program as the largest foreign direct investment in U.S. history.
Growth in Advanced Manufacturing
The announcement coincided with TSMC’s record-breaking second-quarter earnings. Revenue hit NT$1.27 trillion, equivalent to $40.2 billion, for the quarter ending June 30. This represents a 36% increase from the previous year in Taiwan dollar terms. Net income surged 77.4% to NT$706.56 billion, approximately $22 billion. The company reported diluted earnings of NT$27.25 per share, or $4.31 per American depositary receipt.
Most of TSMC’s wafer revenue in the quarter was driven by advanced chips. Technologies at 7 nanometers or below accounted for 77% of total wafer revenue. Three-nanometer chips made up 30%, while 5-nanometer devices contributed 33%. Seven-nanometer chips accounted for another 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 first quarter. Smartphone products comprised 22% of sales.
Increased Capital Expenditure
TSMC has elevated its capital expenditure forecast for 2026 to a range of $60 billion to $64 billion, up from the previous guidance of $52 billion to $56 billion. The company plans to allocate 70% to 80% of this year’s budget toward advanced process technologies. Around 10% to 20% will be spent on advanced packaging, testing, mask production, and related activities. Approximately 10% of the capital plan will go toward specialty technologies.
For the third quarter, TSMC anticipates revenue between $44.6 billion and $45.8 billion. It expects a gross margin of 65% to 67% and an operating margin of 56% to 58%. The company also upgraded its full-year revenue growth forecast to slightly above 40% in U.S. dollar terms. TSMC continues to develop 13 leading-edge and advanced packaging facilities in Taiwan while expanding its manufacturing footprint in Arizona.