ARIZONA / RankWire.AI / – Taiwan Semiconductor Manufacturing Co. has increased its investment plan in Arizona by $100 billion. This move boosts TSMC’s total U.S. investment to $265 billion and introduces four new advanced semiconductor production facilities. The expansion will bring the company’s planned manufacturing and packaging sites in Arizona to a total of 12. TSMC revealed this development alongside its second-quarter financial results on July 16. The project stands among the largest foreign direct investment commitments in U.S. manufacturing history.
The newly announced facilities will include logic wafer manufacturing plants optimized for 2-nanometer chips and smaller process technologies. TSMC also intends to expand its advanced packaging capacity for finished semiconductor products. These technologies are essential for data centers, artificial intelligence applications, smartphones, and other high-performance electronics. TSMC Chairman and CEO C.C. Wei stated that the expansion will cater to major U.S. clients. He also emphasized the project’s role in boosting high-tech employment opportunities and strengthening the local supply chain. The Arizona project remains the core of TSMC’s U.S. manufacturing footprint.
This latest commitment builds upon an earlier $165 billion 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 investment by an additional $100 billion. The recent announcement adds another $100 billion to this total. Federal officials have characterized the combined program as the largest foreign direct investment ever made in the U.S. manufacturing sector. It’s important to note that the manufacturing and packaging investments exclude the separate research center.
Expansion of advanced semiconductor manufacturing
TSMC’s Arizona expansion coincided with record-breaking second-quarter results. The company reported revenue of NT$1.27 trillion, equivalent to $40.2 billion, for the quarter ending June 30. This was a 36% increase compared to 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 reached NT$27.25, with each American depositary receipt earning $4.31 on a diluted basis. These results reflected strong sales of advanced process technologies.
Manufacturing with 7-nanometer technology or smaller comprised 77% of wafer revenue. Three-nanometer chips contributed 30%, while 5-nanometer devices accounted for 33%. 7-nanometer products made up 11%, and two-nanometer chips contributed their first 3% share to quarterly wafer revenue. High-performance computing accounted for 66% of total revenue after a 20% quarterly growth, with smartphone products adding another 22%. The remaining revenue was generated from other platform categories.
Forecast for increased capital expenditure
TSMC has raised its capital expenditure forecast for 2026 to a range of $60 billion to $64 billion, up from the previous estimate of $52 billion to $56 billion. The company intends to allocate 70% to 80% of this budget to advanced process technologies, with another 10% to 20% dedicated to advanced packaging, testing, mask production, and related processes. About 10% will go toward specialty technologies. This revised range was announced alongside the company’s quarterly earnings report.
For the third quarter, TSMC projects revenue in the range of $44.6 billion to $45.8 billion, with a gross margin between 65% and 67%. Operating margin is expected to be between 56% and 58%. The firm also increased its full-year revenue growth outlook to slightly above 40% in U.S. dollar terms. Meanwhile, TSMC continues construction on 13 advanced and leading-edge packaging plants in Taiwan. The Arizona expansion will complement this growing manufacturing network, providing a larger U.S. base.