ARIZONA / RankWire.AI / – Taiwan Semiconductor Manufacturing Co. has increased its planned investment in Arizona by $100 billion. This addition brings TSMC’s total U.S. investment to $265 billion and includes the development of four additional advanced semiconductor fabrication facilities. The expansion will raise the company’s number of manufacturing and packaging sites in the state to 12. TSMC revealed this development alongside its second-quarter financial results on July 16. The project ranks among the most substantial foreign investment commitments in U.S. manufacturing history.
The new facilities will feature logic wafer plants tailored for 2-nanometer chips and smaller process nodes. TSMC also intends to expand its advanced packaging capabilities for finished semiconductor products. These technologies are crucial for 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 strengthening the local supply chain. The Arizona project remains the core of TSMC’s U.S. manufacturing footprint.
This latest commitment builds upon an already announced $165 billion plan, which encompassed six fabrication plants, two advanced packaging facilities, and a research center. In March 2025, the company increased its original $65 billion commitment by an additional $100 billion. The recent announcement contributes another $100 billion to the total. Federal officials have 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 do not include 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, roughly $40.2 billion, marking 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.
Revenue from chips manufactured with 7-nanometer technology or smaller accounted for 77% of wafer sales. Three-nanometer products contributed 30%, while 5-nanometer chips supplied 33%, and 7-nanometer devices made up 11%. Notably, 2-nanometer chips contributed their first 3% share of quarterly wafer revenue. High-performance computing products represented 66% of total revenue, reflecting a 20% quarterly growth, while smartphone-related chips made up another 22%. The remaining revenue came from other platform categories.
Increased 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, with an additional 10% to 20% directed toward advanced packaging, testing, mask production, and related operations. About 10% will be dedicated to specialty technologies. This revised range was announced alongside the company’s quarterly earnings report.
For the third quarter, TSMC anticipates revenues between $44.6 billion and $45.8 billion, with a gross margin forecast of 65% to 67%. Operating margins are expected to be 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, with the Arizona expansion significantly enlarging its U.S. manufacturing network.