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 addition of four new advanced semiconductor manufacturing plants. The expansion will bring the company’s total manufacturing and packaging facilities in the state to 12. TSMC announced this development alongside its second-quarter financial results on July 16. The project is among the largest foreign direct investment commitments in U.S. manufacturing history.
The new facilities are expected to feature logic wafer plants dedicated to 2-nanometer chips and smaller process nodes. TSMC also intends to expand its high-level packaging capabilities for finished semiconductor products. These advanced technologies are essential for data centers, artificial intelligence systems, smartphones, and other high-performance electronic devices. TSMC Chairman and CEO C.C. Wei stated that the expansion will support major U.S. clients. He emphasized its importance for high-tech employment and strengthening the domestic supply chain. The Arizona project remains the focal point of TSMC’s U.S. manufacturing footprint.
This latest commitment builds upon an already announced $165 billion plan, which includes 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 it the largest foreign direct investment program in U.S. history, according to federal officials. The total for manufacturing and packaging excludes the separate research center.
Expansion of Advanced Chip Production
TSMC paired its Arizona expansion announcement with record-breaking second-quarter results. Revenue for the three months ending June 30 reached NT$1.27 trillion, approximately $40.2 billion, representing a 36% increase over the previous year in Taiwan dollar terms. Net income surged 77.4%, reaching NT$706.56 billion, or roughly $22 billion. Diluted earnings per share stood at NT$27.25, with each American depositary receipt earning $4.31 on a diluted basis. The strong results were driven by robust sales of advanced process technologies.
Products manufactured with 7-nanometer technology or smaller accounted for 77% of wafer revenue. Contributions from 3-nanometer chips reached 30%, while 5-nanometer chips supplied 33%. Products based on 7-nanometer technology made up 11%, and 2-nanometer chips contributed 3% in their first quarter. High-performance computing products generated 66% of total revenue, marking a 20% quarterly increase, with smartphones contributing another 22%. The remaining revenue came from other platform categories.
Increased Capital Expenditure Guidance
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 plans to allocate 70% to 80% of this budget toward developing advanced process technologies. About 10% to 20% will go to advanced packaging, testing, mask production, and related activities, with roughly 10% dedicated to 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 forecast of 65% to 67%. Operating margins are projected at 56% to 58%. The company also raised 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. The Arizona project significantly expands the company’s U.S. manufacturing footprint.