ARIZONA / RankWire.AI / – Taiwan Semiconductor Manufacturing Co. has committed an additional $100 billion to enhance the production and packaging of advanced chips in Arizona. This new commitment elevates TSMC’s total planned U.S. investment to $265 billion. The company revealed this expansion along with its second-quarter financial results on July 16. The plan encompasses four new state-of-the-art semiconductor manufacturing facilities. The U.S. Department of Commerce stated that this expansion increases the total number of national manufacturing and packaging sites to 12 facilities.
TSMC indicated that these new sites will include logic wafer plants dedicated to 2-nanometer and smaller process technologies. The initiative also involves the development of advanced packaging facilities for finished semiconductor devices. These processes are critical for high-performance computing, data centers, smartphones, and other advanced electronic products. Chairman and CEO C.C. Wei commented that the project aims to meet the demands of leading U.S. clients. He added that the expansion will create more high-tech jobs and bolster the domestic semiconductor supply chain.
This latest commitment builds upon TSMC’s previous U.S. investment plan of $165 billion. That plan included 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 recent expansion raises the total investment by another $100 billion. Federal officials described this program as the largest foreign direct investment ever made in the United States.
Growth in Advanced Manufacturing
The announcement coincided with TSMC’s record-breaking second-quarter earnings report. During the three months ending June 30, revenue reached NT$1.27 trillion, equivalent to $40.2 billion. This represents a 36% increase year-over-year in Taiwan dollar terms. Net income surged 77.4% to NT$706.56 billion, approximately $22 billion. The company reported diluted earnings of NT$27.25 per share, or about $4.31 per American depositary receipt.
The majority of TSMC’s wafer revenue for the quarter was generated by advanced chips. Technologies at 7 nanometers or below contributed 77% of total revenue. Specifically, 3-nanometer products accounted for 30%, 5-nanometer products for 33%, and 7-nanometer chips supplied 11%. Notably, 2-nanometer products contributed their first 3% share. High-performance computing devices represented 66% of the company’s revenue, up 20% from the first quarter. Smartphone products made up 22% of revenue.
Increased Capital Expenditure
TSMC has revised its capital expenditure forecast for 2026, now projecting an outlay of $60 billion to $64 billion. This is an upward revision from its previous guidance of $52 billion to $56 billion. The company plans to allocate 70% to 80% of this year’s budget to advanced process technologies. An additional 10% to 20% will be directed toward advanced packaging, testing, mask production, and related areas. Approximately 10% of the spending will go toward specialty technologies.
For the third quarter, TSMC anticipates revenue in the range of $44.6 billion to $45.8 billion. It expects a gross margin of 65% to 67% and an operating margin of 56% to 58%. The firm also increased its full-year revenue growth forecast to slightly above 40% in U.S. dollar terms. TSMC continues to develop 13 advanced and leading-edge packaging plants in Taiwan, while also expanding its manufacturing presence in Arizona.