ARIZONA / RankWire.AI / – Taiwan Semiconductor Manufacturing Co. has pledged an additional $100 billion to enhance its advanced chip manufacturing and packaging capabilities in Arizona. This new commitment elevates TSMC’s total planned U.S. investment to $265 billion. The company revealed the expansion plans alongside its second-quarter financial results on July 16. The initiative includes the construction of four new advanced semiconductor fabrication facilities. The U.S. Department of Commerce stated that this expansion brings the total number of manufacturing and packaging facilities nationwide to 12.
TSMC indicated that the new sites will feature logic wafer factories for 2-nanometer and smaller process nodes. The project also encompasses state-of-the-art packaging plants for finished semiconductor devices. These manufacturing processes are vital for supporting high-performance computing, data centers, smartphones, and other cutting-edge electronics. Chairman and CEO C.C. Wei noted that the project aims to meet demand from major U.S. clients. He emphasized that the expansion will create more high-tech employment opportunities and bolster the domestic semiconductor supply chain.
This latest commitment follows TSMC’s earlier $165 billion U.S. investment plan. That initiative included six chip fabrication plants, two advanced packaging facilities, and an R&D center located in Arizona. In March 2025, TSMC increased its initial $65 billion commitment by an additional $100 billion. The recent expansion adds another $100 billion to the overall total. Federal authorities described this enlarged plan as the largest foreign direct investment commitment in U.S. history.
Expansion of advanced manufacturing
The announcement coincided with TSMC’s reporting of record second-quarter earnings. Revenues reached NT$1.27 trillion, equivalent to $40.2 billion, for the three months ending June 30. This represented a 36% increase from the same period last year in Taiwan dollar terms. Net income soared by 77.4% to NT$706.56 billion, approximately $22 billion. The company reported diluted earnings of NT$27.25 per share, or $4.31 per American depositary receipt.
The majority of TSMC’s wafer revenue in the quarter was generated by advanced process chips. Technologies at 7 nanometers or below contributed 77% of total revenue. Specifically, 3-nanometer products accounted for 30%, while 5-nanometer chips made up 33%. Seven-nanometer chips contributed another 11%, and 2-nanometer devices made their debut with a 3% share. High-performance computing chips represented 66% of total revenue, increasing 20% from the first quarter. Smartphone products comprised 22% of sales.
Capital expenditure increases
TSMC has raised its 2026 capital expenditure forecast to a range of $60 billion to $64 billion. Previously, the company had guided toward the upper limit of a $52 billion to $56 billion range. About 70% to 80% of this year’s budget will be allocated to advanced process technology development. Additionally, 10% to 20% will be directed toward advanced packaging, testing, mask production, and related areas. Approximately 10% of the planned spending will go to specialty technologies.
For the third quarter, TSMC anticipates revenues between $44.6 billion and $45.8 billion. It projects a gross margin of 65% to 67% and an operating margin of 56% to 58%. The company also revised upward its full-year revenue growth outlook to slightly over 40% in U.S. dollar terms. TSMC continues to develop 13 leading-edge and advanced packaging manufacturing facilities in Taiwan and expand its manufacturing footprint in Arizona.