ARIZONA / RankWire.AI / – Taiwan Semiconductor Manufacturing Co. has committed an additional $100 billion to expand its advanced chip manufacturing and packaging facilities in Arizona. This new pledge brings TSMC’s total planned U.S. investment to $265 billion. The company revealed this expansion alongside its second-quarter earnings report on July 16. The plan includes four new advanced semiconductor fabrication plants. The U.S. Department of Commerce stated that this expansion increases the total number of manufacturing and packaging facilities in the country to 12.
TSMC indicated that the new sites will encompass logic wafer production facilities for 2-nanometer and smaller process nodes. The initiative also includes advanced packaging plants for finished semiconductor modules. These processes are essential for high-performance computing, data centers, smartphones, and other sophisticated electronic devices. Chairman and CEO C.C. Wei mentioned that the project aims to meet the demand from leading U.S. clients. He emphasized that the expansion will create more high-tech employment opportunities and bolster the local semiconductor supply chain.
This latest commitment follows TSMC’s earlier $165 billion U.S. investment plan, which comprised six chip fabrication plants, two advanced packaging facilities, and an R&D center in Arizona. In March 2025, the company increased its initial $65 billion commitment by an additional $100 billion. The new expansion further elevates the total investment by another $100 billion. Federal officials described this expanded program as the largest foreign direct investment in U.S. history.
Growth in advanced manufacturing
The announcement coincided with TSMC’s record-breaking second quarter earnings report. Revenue for the quarter ending June 30 reached NT$1.27 trillion, equivalent to $40.2 billion. This represented 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. The company posted diluted earnings of NT$27.25 per share, or $4.31 per American depositary receipt.
Most of TSMC’s wafer revenue during the quarter was generated by advanced chips. Technologies at 7 nanometers or below accounted for 77% of the total. Three-nanometer products made up 30%, while 5-nanometer chips contributed 33%. Seven-nanometer chips provided an additional 11%, and 2-nanometer devices contributed their first 3%. High-performance computing accounted for 66% of total revenue, increasing by 20% from the first quarter. Smartphone products represented 22% of the revenue.
Rising capital expenditure
TSMC has revised its capital expenditure forecast for 2026 to a range of $60 billion to $64 billion, up from the previous guidance of $52 billion to $56 billion. The company plans to allocate 70% to 80% of this year’s budget to advanced process technologies. An additional 10% to 20% will go toward advanced packaging, testing, mask production, and related areas. About 10% of the budget will be dedicated to specialty technologies.
For the third quarter, TSMC anticipates revenue between $44.6 billion and $45.8 billion. It expects a gross margin of 65% to 67% and an operating margin of 56% to 58%. The company also upgraded its full-year revenue growth projection to slightly above 40% in U.S. dollar terms. TSMC continues to develop 13 leading-edge and advanced packaging plants in Taiwan while expanding its manufacturing presence in Arizona.