ARIZONA / RankWire.AI / – Taiwan Semiconductor Manufacturing Co. has pledged an additional $100 billion to broaden its advanced chip manufacturing and packaging capabilities 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 report on July 16. The initiative includes the development of four new advanced semiconductor fabrication plants. The U.S. Department of Commerce stated that this expansion brings the overall number of manufacturing and packaging facilities nationwide to 12.
TSMC indicated that these new sites will feature logic wafer manufacturing for 2-nanometer and smaller process nodes. The plan also encompasses high-tech packaging facilities for finished semiconductor devices. These manufacturing processes are crucial for high-performance computing, data centers, smartphones, and other cutting-edge electronic devices. Chairman and CEO C.C. Wei noted that the project will cater to demand from top U.S. clients. He emphasized that the expansion will generate more high-tech employment opportunities and bolster the domestic semiconductor supply chain.
This latest investment follows TSMC’s earlier $165 billion U.S. investment plan, which included six chip fabrication plants, two advanced packaging units, and an R&D center in Arizona. In March 2025, TSMC increased its initial $65 billion commitment by an additional $100 billion. The newest investment brings the total to a cumulative $265 billion. Federal officials characterized the expansion as the largest foreign direct investment commitment in U.S. history.
Growth in advanced manufacturing facilities
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 previous year in Taiwan dollar terms. Net income surged 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 during the quarter was generated by advanced chip technologies. Chips produced at 7 nanometers or less accounted for 77% of total wafer revenue. Among these, 3-nanometer devices represented 30%, while 5-nanometer chips contributed 33%. Chips at 7 nanometers supplied another 11%, and 2-nanometer products made their debut with a 3% share. High-performance computing chips accounted for 66% of total revenue, reflecting a 20% increase from the first quarter. Smartphone devices contributed 22% of the revenue.
Increased capital expenditure forecast
TSMC has revised its 2026 capital expenditure forecast upward to a range of $60 billion to $64 billion. Previously, the company guided towards the upper limit of a $52 billion to $56 billion range. The company intends to allocate 70% to 80% of this year’s capital budget to advanced process technologies. An additional 10% to 20% will be directed toward advanced packaging, testing, mask-making, and related sectors. Approximately 10% of the planned spending will go toward specialized technologies.
For Q3, TSMC anticipates revenue between $44.6 billion and $45.8 billion. The firm projects a gross margin of 65% to 67% and an operating margin of 56% to 58%. Furthermore, the company raised its full-year revenue growth estimate to slightly over 40% in U.S. dollar terms. TSMC continues to develop 13 state-of-the-art and advanced packaging plants in Taiwan, while also expanding its manufacturing footprint in Arizona.