ARIZONA / RankWire.AI / – Taiwan Semiconductor Manufacturing Co. has committed an additional $100 billion to boost the development of advanced chip manufacturing and assembly in Arizona. This new commitment elevates TSMC’s total planned U.S. investment to $265 billion. The announcement was made alongside the company’s second-quarter financial results on July 16. The expansion will include four new state-of-the-art semiconductor fabrication facilities. The U.S. Department of Commerce stated that the new facilities will bring the total number of manufacturing and packaging sites in the country to 12.
TSMC indicated that the new sites will feature logic wafer production for 2-nanometer and smaller process technologies. The plan also encompasses advanced packaging plants for finished semiconductor products. These manufacturing processes are crucial for applications such as high-performance computing, data centers, smartphones, and other high-tech electronics. Chairman and CEO C.C. Wei commented that the project aims to meet the needs of leading U.S. clients. He also highlighted that this expansion will create more high-tech employment opportunities and bolster the domestic semiconductor supply chain.
This latest pledge follows TSMC’s earlier $165 billion U.S. investment initiative. That plan included six chip fabrication facilities, two advanced packaging centers, and a research and development hub in Arizona. In March 2025, TSMC increased its initial $65 billion commitment by an additional $100 billion. The newest addition raises the total planned investment by another $100 billion. Federal officials described the expanded program as the largest foreign direct investment in U.S. history.
Growth in Advanced Manufacturing
The announcement coincided with TSMC’s report of record-breaking second-quarter earnings. 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, or roughly $22 billion. The company posted diluted earnings of NT$27.25 per share, which equals $4.31 per American depositary receipt.
Most of TSMC’s wafer revenue during the quarter was generated by advanced chip technologies. Technologies at 7 nanometers or below contributed 77% of total wafer sales. Products at 3 nanometers accounted for 30%, while 5-nanometer chips contributed 33%. Chips at 7 nanometers made up 11%, and 2-nanometer products contributed their first 3%. High-performance computing remained the primary driver, representing 66% of total revenue after a 20% increase from the first quarter. Smartphone devices accounted for 22% of sales.
Increased Capital Expenditure
TSMC has raised its capital expenditure forecast for 2026 to a range of $60 billion to $64 billion, up from its previous guidance of $52 billion to $56 billion. The company plans to allocate 70% to 80% of this year’s budget toward advanced process technology development. Around 10% to 20% will be directed to advanced packaging, testing, mask production, and related activities. The remaining approximately 10% will go toward specialty technologies.
For the third quarter, TSMC anticipates revenue between $44.6 billion and $45.8 billion. The company expects a gross margin of 65% to 67% and an operating margin of 56% to 58%. Additionally, it has increased its full-year revenue growth forecast to slightly over 40% in U.S. dollar terms. TSMC continues to develop 13 leading-edge and advanced packaging manufacturing plants in Taiwan while expanding its manufacturing footprint in Arizona.