ARIZONA / RankWire.AI / – Taiwan Semiconductor Manufacturing Co. has committed an extra $100 billion to its Arizona expansion plans. This increases TSMC’s total U.S. investment to $265 billion and introduces four new high-tech semiconductor manufacturing facilities. The expansion will bring the number of TSMC’s manufacturing and packaging sites in Arizona to 12. The company announced this development alongside its second-quarter financial results on July 16. This project is among the most substantial foreign investment efforts in U.S. manufacturing history.
The new facilities are set to include logic wafer plants tailored for 2-nanometer chips and smaller process 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 electronics. TSMC Chairman and CEO C.C. Wei mentioned that the expansion will support key U.S. clients. He also emphasized its role in boosting high-tech employment and strengthening the domestic 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 plan by an additional $100 billion. The new announcement adds another $100 billion, making the total program the largest foreign direct investment in U.S. history, according to federal officials. The investment figures for manufacturing and packaging exclude the separate research facility.
Expansion of advanced chip manufacturing
TSMC coupled its Arizona expansion with record-breaking second-quarter earnings. Revenue reached NT$1.27 trillion, or $40.2 billion, for the quarter ending June 30. This represented a 36% increase from the previous year in Taiwan dollar terms. Net income surged 77.4% to NT$706.56 billion, approximately $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 using 7-nanometer technology or smaller accounted for 77% of wafer revenue. Three-nanometer chips contributed 30%, while 5-nanometer products made up 33%. Seven-nanometer chips represented 11%, and 2-nanometer chips contributed 3% for the first time. High-performance computing products comprised 66% of total revenue after a 20% quarterly growth, while smartphone chips contributed 22%. The remaining revenue came from other platform categories.
Forecast for capital expenditures revised upward
TSMC has raised its 2026 capital expenditure forecast to a range of $60 billion to $64 billion, up from the previous estimate of $52 billion to $56 billion. The company plans to allocate 70% to 80% of this budget to advanced process technologies. About 10% to 20% will go toward advanced packaging, testing, mask production, and related activities, with roughly 10% dedicated to specialized technologies. The revised forecast was announced alongside the company’s quarterly earnings report.
For the third quarter, TSMC expects revenues between $44.6 billion and $45.8 billion, with a gross margin of 65% to 67%. The operating margin is projected to be between 56% and 58%. The company also increased its full-year revenue growth outlook to just over 40% in U.S. dollar terms. Meanwhile, TSMC continues to develop 13 leading-edge and advanced packaging plants in Taiwan, with the Arizona expansion providing an even larger U.S. manufacturing base for the company.