ARIZONA / RankWire.AI / – Taiwan Semiconductor Manufacturing Co. has increased its planned investment in Arizona by $100 billion. This move raises TSMC’s overall U.S. investment commitment to $265 billion and includes the development of four new advanced semiconductor manufacturing plants. The expansion will bring the total number of manufacturing and packaging sites in the state to 12. TSMC announced this initiative alongside its second-quarter financial results on July 16. The project stands among the largest foreign direct investment efforts in U.S. manufacturing history.
The new facilities will comprise logic wafer fabs aimed at producing 2-nanometer chips and smaller process nodes. TSMC also intends to expand its advanced packaging capabilities for finished semiconductor products. These technologies cater to data centers, artificial intelligence systems, smartphones, and other high-performance electronic devices. Chairman and CEO C.C. Wei stated that the expansion will support major U.S. clients and linked the project to high-tech job creation and a more resilient domestic supply chain. The Arizona facilities remain the core of TSMC’s U.S. manufacturing footprint.
This recent 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 original $65 billion investment by an additional $100 billion. The latest announcement adds another $100 billion to the total, making it the largest foreign direct investment in U.S. history, according to federal officials. The figures for manufacturing and packaging exclude the separate research center.
Expansion of advanced chip manufacturing
TSMC’s Arizona expansion coincided with record-breaking second-quarter results. Revenue for the quarter ending June 30 reached NT$1.27 trillion, approximately $40.2 billion, marking a 36% increase from the same period a year earlier in Taiwan dollar terms. Net income surged 77.4% to NT$706.56 billion, roughly $22 billion. Diluted earnings per share were 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 technology chips.
Products manufactured with 7-nanometer technology or smaller accounted for 77% of wafer revenue. Three-nanometer chips contributed 30%, while 5-nanometer products made up 33%. Seven-nanometer chips represented 11%. Notably, 2-nanometer chips contributed their first 3% share of quarterly wafer revenue. High-performance computing devices generated 66% of total revenue, reflecting a 20% quarterly growth. Smartphone chips contributed an additional 22%, with other categories making up the remaining revenue.
Revised 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 be dedicated to advanced packaging, testing, mask-making, and related operations, while approximately 10% will go toward specialty technologies. The updated forecast was announced alongside the company’s quarterly earnings report.
Looking ahead to the third quarter, TSMC expects revenue between $44.6 billion and $45.8 billion, with a gross margin of 65% to 67%. Operating margin is projected at 56% to 58%. The company also increased its full-year revenue growth outlook to slightly above 40% in U.S. dollar terms. Meanwhile, TSMC continues to develop 13 advanced and leading-edge packaging plants in Taiwan, with the Arizona expansion adding a significant U.S. manufacturing base to this global network.