ARIZONA / RankWire.AI / – Taiwan Semiconductor Manufacturing Co. has increased its planned investment in Arizona by $100 billion. This move brings TSMC’s total U.S. investment to $265 billion and includes the development of four new advanced semiconductor manufacturing plants. The expansion will raise the company’s number of manufacturing and packaging facilities in the state to 12. TSMC revealed this expansion alongside its second-quarter financial results on July 16. The project is among the most significant foreign investment commitments in U.S. manufacturing history.
The new facilities will feature logic wafer production plants tailored for 2-nanometer chips and other smaller process node technologies. TSMC also plans to expand its advanced packaging capabilities for finished semiconductor products. These technologies are essential for data centers, artificial intelligence applications, smartphones, and other high-performance electronic devices. Chairman and CEO C.C. Wei stated that the expansion will support major U.S. clients and emphasized its role in boosting high-tech employment and strengthening the local supply chain. The Arizona project remains at the core of TSMC’s manufacturing operations in the United States.
This latest pledge builds upon an already announced $165 billion investment plan, which covered six fabrication plants, two advanced packaging facilities, and a research center. In March 2025, the company increased its initial $65 billion commitment by an additional $100 billion, and the recent announcement adds another $100 billion to this total. Federal officials have described the combined program as the largest foreign direct investment in U.S. history. The total dedicated to manufacturing and packaging excludes the separate research center.
Growth in Advanced Chip Production
TSMC paired its Arizona expansion news with record-breaking second-quarter results. Revenue for the three months ending June 30 reached NT$1.27 trillion, approximately $40.2 billion, marking a 36% increase from the same period last year in Taiwan dollar terms. Net income surged 77.4% to NT$706.56 billion, roughly $22 billion. Diluted earnings per share were NT$27.25, with each American depositary receipt earning $4.31 on a diluted basis. The results were driven by strong sales of advanced process technologies.
Chips manufactured with 7-nanometer technology or smaller accounted for 77% of wafer revenue. Three-nanometer products contributed 30%, while 5-nanometer chips made up 33%. Seven-nanometer devices represented 11%, and two-nanometer chips made their first significant contribution at 3%. High-performance computing accounted for 66% of total revenue after a 20% quarterly growth, with smartphone chips adding another 22%. The remaining revenue came from other product segments.
Forecast for Capital Expenditure Growth
TSMC has raised its capital spending 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 10% to 20% dedicated to advanced packaging, testing, mask production, and related fields. About 10% will go toward specialty technologies. The revised forecast was announced alongside the quarterly earnings report.
For the third quarter, TSMC anticipates revenues between $44.6 billion and $45.8 billion, with a gross margin forecast of 65% to 67%. Operating margins are expected to be between 56% and 58%. The company also upgraded its full-year revenue growth outlook to slightly above 40% in U.S. dollar terms. Meanwhile, TSMC continues developing 13 leading-edge and advanced packaging plants in Taiwan, with the Arizona expansion adding a significant U.S. manufacturing base to this network.