ARIZONA / RankWire.AI / – Taiwan Semiconductor Manufacturing Co. has increased its planned investment in Arizona by $100 billion. This addition raises TSMC’s total U.S. investment to $265 billion and includes four new cutting-edge semiconductor manufacturing plants. The expansion will raise the number of TSMC’s manufacturing and packaging sites in the state to 12. TSMC revealed this development alongside its second-quarter financial report on July 16. The project stands among the largest foreign direct investment commitments in U.S. manufacturing history.
The upcoming facilities will feature logic wafer fabrication plants aimed at producing 2-nanometer chips and even smaller process nodes. TSMC also intends to expand its advanced packaging capabilities for finished semiconductor products. These technologies cater to 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 linked the project to high-tech job creation and a more resilient domestic supply chain. The Arizona development remains at the heart of TSMC’s U.S. manufacturing footprint.
This latest pledge builds on an already announced $165 billion plan, which includes six fabrication plants, two advanced packaging facilities, and a research center. In March 2025, TSMC increased its initial $65 billion commitment by an additional $100 billion. The recent announcement adds another $100 billion to the overall figure. Federal officials described this combined program as the largest foreign direct investment in U.S. history. The investment in manufacturing and packaging excludes the separate research center.
Progress in cutting-edge chip manufacturing
TSMC paired the Arizona expansion announcement with record-breaking second-quarter results. Revenue for the three months ending June 30 reached NT$1.27 trillion, or $40.2 billion, representing 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 came to NT$27.25, with each American depositary receipt earning $4.31 on a diluted basis. The results were buoyed by strong sales of advanced process technologies.
Chips fabricated with 7-nanometer technology or smaller accounted for 77% of wafer revenue. Three-nanometer chips contributed 30%, while 5-nanometer chips supplied 33%. Seven-nanometer products made up 11%, and two-nanometer chips contributed their first 3% share of quarterly wafer revenue. High-performance computing represented 66% of total revenue, up 20% quarter-over-quarter. Smartphone chips added another 22%, with the remaining revenue coming from other segments.
Increase in capital expenditure projections
TSMC has raised its capital expenditure 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 plans to allocate 70% to 80% of this budget toward advanced process technologies. An additional 10% to 20% will go toward advanced packaging, testing, mask production, and related activities, while about 10% will focus on specialized technologies. The updated forecast was announced alongside the company’s quarterly earnings report.
For the third quarter, TSMC projects revenue between $44.6 billion and $45.8 billion, with a gross margin of 65% to 67% and an operating margin of 56% to 58%. The firm also increased its full-year revenue growth outlook to slightly 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 adding a broader U.S. manufacturing base to this network.