ARIZONA / RankWire.AI / – Taiwan Semiconductor Manufacturing Co. has increased its planned investment in Arizona by $100 billion. This move elevates TSMC’s overall U.S. investment to $265 billion and involves the development of four new advanced semiconductor fabrication facilities. The expansion will bring the total number of manufacturing and packaging sites in the state to 12. TSMC made this announcement alongside its second-quarter financial results on July 16. The project is considered one of the largest foreign direct investment commitments in U.S. manufacturing history.
The newly planned facilities will feature logic wafer plants capable of producing 2-nanometer chips and smaller process nodes. TSMC also aims to expand its advanced packaging capacity for finished semiconductor products. These cutting-edge technologies support data centers, artificial intelligence applications, smartphones, and other high-performance electronic devices. Chairman and CEO C.C. Wei stated that the expansion will cater to major U.S. customers and emphasized its role in fostering high-tech employment and strengthening the local supply chain. The buildout in Arizona continues to be the core of TSMC’s U.S. manufacturing footprint.
This latest commitment builds upon an earlier $165 billion plan announced by TSMC, which included six fabrication plants, two advanced packaging facilities, and a research center. In March 2025, the company increased its initial $65 billion commitment by an additional $100 billion. The recent announcement adds another $100 billion to the total investment. Federal officials have described this combined program as the largest foreign direct investment in U.S. history. The total dedicated to manufacturing and packaging excludes the separate research center.
Expansion of Advanced Chip Manufacturing
TSMC paired the Arizona expansion with its record-breaking second-quarter results. Revenue for the three months ending June 30 reached NT$1.27 trillion, or $40.2 billion, representing a 36% increase from 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 were NT$27.25, with each American depositary receipt earning $4.31 on a diluted basis. The quarterly results reflected strong sales from advanced process technologies.
Chips manufactured using 7-nanometer technology or smaller accounted for 77% of wafer revenue. Three-nanometer products contributed 30%, while 5-nanometer chips made up 33%. Seven-nanometer products represented 11%. Two-nanometer chips contributed their first 3% share of quarterly wafer revenue. High-performance computing hardware generated 66% of the company’s revenue after a 20% quarterly growth, with smartphone products adding another 22%. The remaining revenue came from other platform categories.
Increased Capital Expenditure Outlook
TSMC has raised its capital spending 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 toward advanced process technologies. An additional 10% to 20% will go toward advanced packaging, testing, mask production, and related operations. About 10% is designated for specialty technologies. The updated forecast was announced alongside the company’s quarterly earnings report.
For the third quarter, TSMC projects revenue between $44.6 billion and $45.8 billion, with a gross margin estimate of 65% to 67%. Operating margin is expected to be between 56% and 58%. The company also increased 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 further broadening its U.S. manufacturing network.