ARIZONA / RankWire.AI / – Taiwan Semiconductor Manufacturing Co. has increased its planned investment in Arizona by $100 billion. This move brings TSMC’s total U.S. investment program to $265 billion and includes four new advanced semiconductor manufacturing facilities. The expansion will raise the company’s manufacturing and packaging sites in Arizona to a total of 12. TSMC made the announcement alongside its second-quarter financial report on July 16. This project is among the largest foreign investment commitments in U.S. manufacturing history.
The new plants will feature logic wafer fabrication facilities capable of producing 2-nanometer chips and smaller process technologies. TSMC also intends to expand its advanced packaging capacity for finished semiconductor products. These cutting-edge technologies cater to data centers, artificial intelligence systems, smartphones, and other high-performance electronic devices. TSMC Chairman and CEO C.C. Wei stated that the expansion will serve major U.S. clients and emphasized the project’s role in supporting high-tech employment and strengthening the domestic supply chain. The Arizona facilities remain 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 investment by an additional $100 billion, bringing the total to $165 billion. The recent announcement adds another $100 billion, making the total commitment the largest foreign direct investment in U.S. history, according to federal officials. It’s important to note that the manufacturing and packaging investments exclude the separate research center.
Expansion of advanced chip manufacturing
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, or $40.2 billion, marking a 36% increase from the previous year in Taiwan dollar terms. Net income surged by 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 quarter’s results were bolstered by strong sales of advanced process technologies.
Products manufactured with 7-nanometer or smaller technology accounted for 77% of wafer revenue. Three-nanometer chips contributed 30%, while 5-nanometer chips made up 33%. Seven-nanometer products represented 11%, and two-nanometer chips just began contributing 3% of quarterly wafer revenue. High-performance computing devices generated 66% of total revenue, up 20% quarter-over-quarter. Smartphone chips contributed an additional 22%, with the remaining revenue coming from other platform categories.
Forecast for increased capital expenditure
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 toward advanced process technologies, while 10% to 20% will go to advanced packaging, testing, mask production, and related operations. About 10% will be dedicated to specialty technologies. The revised forecast was announced alongside TSMC’s quarterly earnings.
For the third quarter, TSMC anticipates revenue between $44.6 billion and $45.8 billion, with a gross margin of 65% to 67%. Operating margin is expected to be between 56% and 58%. The company also upgraded its full-year revenue growth forecast to slightly above 40%, measured in U.S. dollar terms. Meanwhile, TSMC continues to develop 13 leading-edge and advanced packaging plants in Taiwan, with the Arizona expansion adding a significant U.S. manufacturing base to this global network.