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 raises TSMC’s total planned U.S. investment to $265 billion. The company revealed this expansion alongside its second-quarter earnings report on July 16. The initiative includes the construction of four new state-of-the-art semiconductor production facilities. The U.S. Department of Commerce noted that this expansion increases the total number of manufacturing and packaging facilities in the country to 12.
TSMC stated that the new sites will feature logic wafer fabrication plants for 2-nanometer and smaller process technologies. The plan also encompasses advanced packaging facilities for finished semiconductor products. These processes are essential for high-performance computing, data centers, smartphones, and other cutting-edge electronics. Chairman and CEO C.C. Wei commented 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 domestic semiconductor supply chain.
This latest pledge follows TSMC’s previous $165 billion U.S. investment plan, which included six chip fabrication plants, two advanced packaging facilities, and a research and development center in Arizona. In March 2025, the company increased its initial $65 billion commitment by an additional $100 billion. The newest expansion effectively raises the total committed investment by yet 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’s record-breaking second-quarter financial results. Revenue for the three months ending June 30 reached NT$1.27 trillion, equivalent to $40.2 billion. This represents a 36% increase from the previous year in Taiwan dollar terms. The company’s net income surged by 77.4% to NT$706.56 billion, around $22 billion. TSMC reported diluted earnings of NT$27.25 per share, or $4.31 per American depositary receipt.
During the quarter, most of TSMC’s wafer revenue stemmed from advanced chips. Technologies at 7 nanometers or below contributed 77% of total wafer sales. Products at 3 nanometers accounted for 30%, while 5-nanometer chips made up 33%. Chips at 7 nanometers supplied 11%, and for the first time, 2-nanometer products contributed 3%. High-performance computing accounted for 66% of revenue, up 20% from the first quarter. Smartphone devices represented 22% of sales.
Increase in capital expenditure
TSMC has raised its capital expenditure forecast for 2026 to a range of $60 billion to $64 billion. Previously, the company guided toward the upper end of a $52 billion to $56 billion range. The company intends to allocate 70% to 80% of this year’s budget to advanced process technologies. Additional spending on advanced packaging, testing, mask manufacturing, and related areas will account for 10% to 20%. About 10% of the planned expenditure will go toward specialty technologies.
For the third quarter, TSMC anticipates revenue 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 upgraded 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 plants in Taiwan and expand its manufacturing footprint in Arizona.