ARIZONA / RankWire.AI / – Taiwan Semiconductor Manufacturing Co. has increased its planned investment in Arizona by $100 billion. This decision raises TSMC’s total U.S. investment program to $265 billion and includes four new advanced semiconductor fabrication plants. The expansion will bring the total number of manufacturing and packaging facilities TSMC plans in the state to 12. The company announced this development alongside its second-quarter financial results on July 16. This project stands among the largest foreign direct investment commitments in U.S. manufacturing history.
The newly announced facilities will feature logic wafer plants capable of producing 2-nanometer chips and smaller process nodes. TSMC also intends to expand its advanced packaging capacity for finished semiconductor products. These technologies are essential for data centers, artificial intelligence applications, smartphones, and other high-performance electronic devices. TSMC Chairman and CEO C.C. Wei stated that the expansion will support major U.S. customers and emphasized its importance for high-tech employment and strengthening the domestic supply chain. The Arizona facilities remain at the core of TSMC’s U.S. manufacturing footprint.
This latest commitment builds upon a previously announced $165 billion plan that 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 total investment. Federal officials characterized this combined program as the largest foreign direct investment ever made in the U.S. The total for manufacturing and packaging excludes the separate research center.
Expansion of advanced semiconductor manufacturing
TSMC’s Arizona expansion coincided with record second-quarter results. The company reported revenue of NT$1.27 trillion, equivalent to $40.2 billion, for the three months ending June 30. This represented a 36% increase from the previous year in Taiwan dollar terms. Net income surged 77.4% to NT$706.56 billion, roughly $22 billion. Diluted earnings per share reached NT$27.25, with each American depositary receipt (ADR) earning $4.31 on a diluted basis. The strong quarterly results were driven by robust sales of advanced process technology chips.
Producing chips with 7-nanometer process technology or smaller accounted for 77% of wafer revenue. 3-nanometer chips contributed 30%, while 5-nanometer chips made up 33%. 7-nanometer products accounted for 11%, and 2-nanometer chips contributed their first 3% share of quarterly wafer revenue. High-performance computing chips generated 66% of total revenue, reflecting a 20% quarterly growth. Smartphone chips contributed an additional 22%, with other segments making up the remaining revenue.
Increase in capital expenditure projections
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 to advanced process technologies. An additional 10% to 20% will go toward advanced packaging, testing, mask production, and related operations, with roughly 10% dedicated to specialty technologies. The revised forecast was announced alongside the company’s quarterly earnings report.
For the third quarter, TSMC projects revenue in the range of $44.6 billion to $45.8 billion, with gross margins between 65% and 67%. Operating margins are expected to fall between 56% and 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 expansion enhances its U.S. manufacturing network, adding a significant new base.