ARIZONA / RankWire.AI / – Taiwan Semiconductor Manufacturing Co. has pledged an additional $100 billion to enhance its advanced chip manufacturing and packaging operations in Arizona. This new commitment brings TSMC’s total planned U.S. investment to $265 billion. The expansion was announced alongside the company’s second-quarter financial results on July 16, and includes four new state-of-the-art semiconductor fabrication facilities. According to the U.S. Department of Commerce, this move increases the national count of manufacturing and packaging sites to 12.
TSMC indicated that these new sites will feature logic wafer plants for 2-nanometer and smaller process nodes. The plan also encompasses advanced packaging facilities for finished semiconductor devices. These technologies support high-performance computing, data centers, smartphones, and other cutting-edge electronics. Chairman and CEO C.C. Wei stated that the project aims to meet the demands of leading U.S. clients and will generate more high-tech employment opportunities while bolstering the local semiconductor supply chain.
This latest pledge continues TSMC’s previous $165 billion U.S. investment plan, which comprised six chip fabrication plants, two advanced packaging facilities, and a research and development center in Arizona. In March 2025, TSMC increased its initial $65 billion commitment by an additional $100 billion. The newest expansion pushes the total commitment to another $100 billion, with federal officials describing it as the largest foreign direct investment in U.S. history.
Growth in advanced manufacturing
The announcement coincided with TSMC reporting record second-quarter earnings. Revenue for the quarter ending June 30 reached NT$1.27 trillion, or approximately $40.2 billion. This marked a 36% increase compared to the same period last year in Taiwan dollar terms. Net income soared 77.4% to NT$706.56 billion, roughly $22 billion. The company reported diluted earnings per share of NT$27.25, equivalent to $4.31 per American depositary receipt.
The majority of TSMC’s wafer revenue in the quarter came 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 contributed 33%. Chips at 7 nanometers supplied another 11%, and 2-nanometer products made their debut with a 3% share. High-performance computing chips represented 66% of total revenue, up 20% from the first quarter. Smartphone devices made up 22% of sales.
Increase in capital expenditures
TSMC has revised its capital expenditure forecast for 2026 to a range of $60 billion to $64 billion, up from its previous guidance of $52 billion to $56 billion at the higher end. The company intends to allocate 70% to 80% of this year’s budget to advanced process technologies, with 10% to 20% dedicated to advanced packaging, testing, mask production, and related activities. About 10% of planned spending will go toward specialized technologies.
For the third quarter, TSMC anticipates revenue between $44.6 billion and $45.8 billion. The company expects a gross margin of 65% to 67% and an operating margin of 56% to 58%. It also raised its full-year revenue growth forecast to slightly above 40% in U.S. dollar terms. TSMC remains committed to constructing 13 leading-edge and advanced packaging facilities in Taiwan and expanding its manufacturing operations in Arizona.