ARIZONA / RankWire.AI / – Taiwan Semiconductor Manufacturing Co. has increased its planned investment in Arizona by $100 billion. This new commitment brings TSMC’s total U.S. investment to $265 billion. The expansion includes the development of four additional advanced semiconductor fabrication facilities. As a result, the company’s planned manufacturing and packaging locations in the state will grow to 12. TSMC revealed this development alongside its second-quarter financial results on July 16. The project ranks among the most significant foreign direct investment efforts in U.S. manufacturing history.
These new facilities will feature logic wafer factories dedicated to 2-nanometer chips and other smaller process technologies. TSMC also intends to expand its advanced packaging capabilities for finished semiconductor products. These 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. clients and emphasized its role in boosting high-tech employment and reinforcing the domestic supply chain. The Arizona facilities continue to be the focal point of TSMC’s U.S. manufacturing footprint.
This latest pledge supplements an existing $165 billion plan previously announced by TSMC. That earlier initiative encompassed six fabrication plants, two advanced packaging sites, 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 overall total. Federal officials described the combined program as the largest foreign direct investment in U.S. history. It’s important to note that the manufacturing and packaging investments exclude the separate research facility.
Expansion of Advanced Chip Production
TSMC paired its Arizona expansion announcement with record-breaking second-quarter results. Revenue for the quarter ending June 30 reached NT$1.27 trillion, equivalent to $40.2 billion, reflecting 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 stood at NT$27.25, with each American depositary receipt earning $4.31 on a diluted basis. The results highlighted robust sales from advanced process technologies.
Products manufactured with 7-nanometer technology or smaller accounted for 77% of wafer revenue. Three-nanometer chips contributed 30%, while 5-nanometer chips represented 33%. Seven-nanometer products made up 11%, and 2-nanometer chips contributed their first 3% share of quarterly wafer revenue. High-performance computing sales comprised 66% of total revenue, up 20% quarter-over-quarter. Smartphone-related products accounted for another 22%, with the remaining revenue coming from other platform categories.
Forecast for Capital Expenditure Growth
TSMC has raised its capital expenditure forecast for 2026 to a range of $60 billion to $64 billion, up from the previous $52 billion to $56 billion estimate. The company plans to allocate 70% to 80% of this budget to advanced process technology development. An additional 10% to 20% will be directed toward advanced packaging, testing, mask production, and related activities. About 10% is expected to go toward specialty technologies. The revised 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 anticipated to be between 65% and 67%. Operating margins are expected to range from 56% to 58%. The company also upgraded its full-year revenue growth outlook to slightly over 40% in U.S. dollar terms. Meanwhile, TSMC continues to develop 13 leading-edge and advanced packaging plants in Taiwan, with the Arizona expansion significantly enlarging its U.S. manufacturing footprint.