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 state-of-the-art semiconductor manufacturing facilities. The expansion will bring TSMC’s total manufacturing and packaging sites in the state to 12. TSMC announced this development alongside its second-quarter financial results on July 16. The project ranks among the most significant foreign investment commitments in U.S. manufacturing history.
These new facilities will encompass logic wafer plants 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 are used in data centers, artificial intelligence systems, smartphones, and other high-performance electronics. Chairman and CEO C.C. Wei stated that the expansion will cater to key U.S. clients. He also connected the project to the creation of high-tech jobs and the strengthening of the domestic supply chain. The Arizona buildout remains central to TSMC’s U.S. manufacturing footprint.
This latest commitment builds upon an already announced $165 billion plan, which included 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 to the overall total. Federal officials described this combined program as the largest foreign direct investment ever made in the U.S. The manufacturing and packaging investments exclude the separate research center.
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, or $40.2 billion, reflecting a 36% increase from the previous 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. These results were driven by strong sales of advanced process technologies.
Chips manufactured with 7-nanometer technology or smaller accounted for 77% of wafer revenue, with 3-nanometer products contributing 30%, and 5-nanometer chips providing 33%. Seven-nanometer chips made up 11%, while 2-nanometer chips contributed their first 3% share of quarterly wafer revenue. High-performance computing accounted for 66% of total revenue, marking a 20% quarterly growth. Smartphone chips contributed an additional 22%, with the remaining revenue coming from other product categories.
Capital Expenditure Outlook Raised
TSMC has increased 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 to advanced process technologies. Additional spending on advanced packaging, testing, mask production, and related operations will account for 10% to 20%, with about 10% directed toward specialty technologies. This revised forecast was announced alongside the company’s quarterly earnings report.
For the third quarter, TSMC anticipates revenue between $44.6 billion and $45.8 billion, with gross margins expected to be between 65% and 67%. Operating margins are projected to fall within 56% to 58%. The company also upgraded 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 adding a significantly larger U.S. manufacturing base to this global network.