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 latest 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 plants. The U.S. Department of Commerce stated that this will bring the total number of manufacturing and packaging facilities in the country to 12.
TSMC indicated that these new sites will feature logic wafer fabs for 2-nanometer and smaller process nodes. The initiative also encompasses cutting-edge packaging plants for finished semiconductor products. These processes are fundamental to high-performance computing, data centers, smartphones, and other advanced electronic devices. Chairman and CEO C.C. Wei mentioned that the project aims to meet the demands of leading U.S. clients. He added that the expansion will create more high-tech jobs and bolster the local semiconductor supply chain.
This latest pledge follows TSMC’s prior $165 billion U.S. investment plan, which included six wafer 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 newest addition raises the total investment commitment 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 financial results. The company posted revenue of NT$1.27 trillion, approximately $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 surged 77.4% to NT$706.56 billion, or roughly $22 billion. Diluted earnings per share were NT$27.25, equivalent to $4.31 per American depositary receipt.
The majority of TSMC’s wafer revenue during the quarter came from advanced chip technologies. Processes at 7 nanometers or smaller made up 77% of total wafer sales. Specifically, 3-nanometer products accounted for 30%, and 5-nanometer products contributed 33%. Chips at 7 nanometers provided another 11%, while 2-nanometer devices contributed their first 3%. High-performance computing chips represented 66% of total revenue, increasing by 20% compared to the first quarter. Smartphone products made up 22% of sales.
Increased capital expenditure
TSMC has raised its capital expenditure forecast for 2026 to a range of $60 billion to $64 billion. Previously, the company guided towards a high end of $52 billion to $56 billion. It plans to allocate 70% to 80% of this year’s budget to advanced process technologies. An additional 10% to 20% will be invested in advanced packaging, testing, mask production, and related sectors. About 10% of the spending will go toward specialty technologies.
For the third quarter, TSMC anticipates revenue between $44.6 billion and $45.8 billion. The company projects a gross margin of 65% to 67% and an operating margin of 56% to 58%. It also increased its full-year revenue growth outlook to slightly above 40% in U.S. dollar terms. TSMC continues to develop 13 leading-edge and advanced packaging manufacturing facilities in Taiwan while expanding its manufacturing presence in Arizona.