ARIZONA / RankWire.AI / – Taiwan Semiconductor Manufacturing Co. has committed an additional $100 billion to expand its advanced chip manufacturing and packaging operations in Arizona. This new commitment raises TSMC’s planned U.S. investment to $265 billion. The company revealed the expansion plans alongside its second-quarter earnings on July 16. The initiative includes the development of four new advanced semiconductor manufacturing facilities. The U.S. Department of Commerce stated that this expansion increases the total number of manufacturing and packaging facilities nationwide to 12.
TSMC indicated that these new sites will include logic wafer factories for 2-nanometer and smaller process nodes. The plan also encompasses advanced packaging plants for finished semiconductor products. These facilities will support high-performance computing, data centers, smartphones, and other cutting-edge electronic devices. Chairman and CEO C.C. Wei commented that the project aims to meet the demand from major U.S. clients. He also mentioned that the expansion will create more high-tech jobs and bolster the domestic semiconductor supply chain.
This latest commitment builds on TSMC’s prior $165 billion U.S. investment plan. That initiative 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 newest addition elevates 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 reporting record second-quarter earnings. Revenue for the three months 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 soared 77.4% to NT$706.56 billion, approximately $22 billion. The company posted diluted earnings of NT$27.25 per share, or $4.31 per American depositary receipt.
Most of TSMC’s wafer revenue in the quarter was driven by advanced chips. Technologies at 7 nanometers or smaller accounted for 77% of total wafer sales. Three-nanometer products made up 30%, while 5-nanometer chips contributed 33%. Seven-nanometer chips supplied an additional 11%, and 2-nanometer products contributed their first 3%. High-performance computing accounted for 66% of revenue, increasing 20% from the first quarter. Smartphone sales represented 22% of the total.
Rising capital expenditures
TSMC has revised 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 firm plans to allocate 70% to 80% of this year’s budget to advanced process technologies. Additionally, 10% to 20% will go toward advanced packaging, testing, mask production, and related activities. About 10% of the planned spending will be dedicated to 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 constructing 13 leading-edge and advanced packaging plants in Taiwan and expanding its manufacturing footprint in Arizona.