ARIZONA / RankWire.AI / – Taiwan Semiconductor Manufacturing Co. has committed an additional $100 billion to expand its advanced chip manufacturing and packaging capacity in Arizona. This new commitment elevates TSMC’s total planned U.S. investment to $265 billion. The company revealed this expansion alongside its second-quarter earnings on July 16. The plan includes the construction of four new advanced semiconductor fabrication facilities. The U.S. Department of Commerce noted that this move increases the total number of manufacturing and packaging facilities in the country to 12.
TSMC indicated that the new sites will feature logic wafer fabrication plants for 2-nanometer and smaller process nodes. The expansion also encompasses advanced packaging facilities for finished semiconductor devices. These technologies support high-performance computing, data centers, smartphones, and other cutting-edge electronic devices. TSMC Chairman and CEO C.C. Wei stated that the project aims to meet the demand from leading U.S. clients. He added that the expansion is expected to create more high-tech jobs and bolster the domestic semiconductor supply chain.
This latest pledge builds on TSMC’s earlier $165 billion U.S. investment initiative. That plan included six chip fabrication plants, two advanced packaging facilities, and a research and development center in Arizona. In March 2025, TSMC increased its initial $65 billion commitment by an additional $100 billion. The current expansion adds another $100 billion to the overall total. Federal officials described this enlarged program as the largest foreign direct investment in U.S. history.
Growth in advanced manufacturing
The announcement coincided with TSMC reporting record second-quarter earnings. Revenue for the three months ending June 30 reached NT$1.27 trillion, equivalent to $40.2 billion. This marked a 36% increase from the same period last year 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, or approximately $4.31 per American depositary receipt.
Most of TSMC’s wafer revenue during the quarter was driven by advanced chip technologies. Processes at 7 nanometers or smaller accounted for 77% of total wafer sales. Products at 3 nanometers made up 30%, while 5-nanometer chips contributed 33%. Chips at 7 nanometers supplied an additional 11%, and 2-nanometer technology contributed its first 3%. High-performance computing applications represented 66% of the company’s revenue, up 20% from the first quarter. Smartphone devices accounted for 22% of sales.
Rising capital expenditures
TSMC has increased its 2026 capital expenditure forecast to between $60 billion and $64 billion. Previously, the company projected spending at the higher end of a $52 billion to $56 billion range. About 70% to 80% of this year’s budget will be allocated to advanced process technologies. An additional 10% to 20% will be dedicated to advanced packaging, testing, mask production, and related areas. Approximately 10% of the total will go toward specialty technologies.
Looking ahead to the third quarter, TSMC anticipates revenues 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%. It also revised its full-year revenue growth estimate to slightly above 40% in U.S. dollar terms. TSMC continues to develop 13 leading-edge and advanced packaging plants in Taiwan and is expanding its manufacturing footprint in Arizona.