ARIZONA / RankWire.AI / – Taiwan Semiconductor Manufacturing Co. has increased its planned investment in Arizona by $100 billion. This move raises TSMC’s total U.S. investment to $265 billion and includes the addition of four state-of-the-art semiconductor manufacturing plants. The expansion will bring TSMC’s total number of manufacturing and packaging sites in Arizona to 12. The company announced this development alongside its second-quarter financial results on July 16. The project is among the largest foreign investment commitments in U.S. manufacturing history.
The newly announced facilities will feature logic wafer production lines for 2-nanometer chips and smaller process technologies. TSMC also intends to expand its advanced packaging capabilities for finished semiconductor products. These technologies are used in data centers, artificial intelligence systems, smartphones, and other high-performance electronics. TSMC Chairman and CEO C.C. Wei stated that the expansion will support major U.S. clients and also emphasized its role in promoting high-tech employment and strengthening the domestic supply chain. The Arizona project remains at the core of TSMC’s U.S. manufacturing footprint.
This latest commitment builds upon an earlier $165 billion investment plan announced by TSMC, which included six fabrication plants, two advanced packaging facilities, and a research center. In March 2025, the company increased its initial $65 billion commitment by an additional $100 billion. The new announcement adds another $100 billion, making the total program the largest foreign direct investment in U.S. history, according to federal officials. The total for manufacturing and packaging excludes 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, or $40.2 billion, marking 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. 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.
Chips manufactured using 7-nanometer technology or smaller accounted for 77% of wafer revenue. Three-nanometer chips contributed 30%, and 5-nanometer chips supplied 33%. Seven-nanometer products made up 11%. For the first time, two-nanometer chips contributed 3% of quarterly wafer revenue. High-performance computing represented 66% of total revenue, up 20% quarter-over-quarter. Smartphone chips contributed an additional 22%, with other product categories making up the remaining share.
Capital Expenditure Outlook Elevated
TSMC raised its capital expenditure forecast for 2026 to between $60 billion and $64 billion, up from the previous range of $52 billion to $56 billion. The company intends to allocate 70% to 80% of this budget to advanced process technology development. About 10% to 20% will go toward advanced packaging, testing, mask making, and related operations, while approximately 10% will be dedicated to specialty technologies. This updated forecast was announced alongside the company’s quarterly earnings release.
For the third quarter, TSMC anticipates revenue between $44.6 billion and $45.8 billion, with a gross margin of 65% to 67%. Operating margin is projected 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. The Arizona expansion significantly enlarges TSMC’s U.S. manufacturing footprint.