ARIZONA / RankWire.AI / – Taiwan Semiconductor Manufacturing Co. has pledged an additional $100 billion to enhance advanced chip manufacturing and packaging facilities in Arizona. This new commitment elevates TSMC’s total planned U.S. investment to $265 billion. The company revealed this expansion alongside its second-quarter earnings on July 16. The plan includes the development of four new advanced semiconductor production plants. The U.S. Department of Commerce stated that this expansion increases the total number of manufacturing and packaging facilities nationwide to 12.
TSMC indicated that these new sites will feature logic wafer facilities for 2-nanometer and smaller process nodes. The initiative also encompasses advanced packaging plants designed for finished semiconductor devices. These manufacturing processes are crucial for high-performance computing, data centers, smartphones, and other cutting-edge electronics. Chairman and CEO C.C. Wei noted that the project aims to meet the demands of prominent U.S. clients. He added that the expansion will create more high-tech employment opportunities and reinforce the domestic semiconductor supply chain.
This latest pledge follows TSMC’s earlier $165 billion U.S. investment plan, which included six wafer fabrication plants, two advanced packaging facilities, and an R&D center in Arizona. In March 2025, TSMC increased its initial $65 billion commitment by an additional $100 billion. The recent expansion boosts the total investment by another $100 billion. Federal officials described the program as the largest foreign direct investment in U.S. history.
Expansion of advanced manufacturing
The announcement coincided with TSMC’s record-breaking second quarter earnings. Revenue for the quarter ending June 30 reached NT$1.27 trillion, equivalent to $40.2 billion. This represented a 36% increase from 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 of NT$27.25 per share, or $4.31 per American depositary receipt.
The majority of TSMC’s wafer revenue during the quarter was driven by advanced chip technologies. Chips manufactured at 7 nanometers or below accounted for 77% of the total revenue. Specifically, 3-nanometer products made up 30%, 5-nanometer products contributed 33%, and 7-nanometer chips supplied 11%. For the first time, 2-nanometer products contributed 3%. High-performance computing chips represented 66% of overall revenue, increasing 20% from the first quarter. Smartphone chips accounted for 22% of the revenue.
Capital expenditure increases
TSMC has adjusted its 2026 capital expenditure forecast upward to a range of $60 billion to $64 billion, up 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 go toward advanced packaging, testing, mask production, and related activities. About 10% of planned spending will be dedicated to specialized technologies.
For the third quarter, TSMC anticipates revenue between $44.6 billion and $45.8 billion. It expects a gross margin of 65% to 67% and an operating margin of 56% to 58%. The company has also raised 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 and is expanding its manufacturing facilities in Arizona.