ARIZONA / RankWire.AI / – Taiwan Semiconductor Manufacturing Co. has pledged an additional $100 billion to enhance its advanced chip manufacturing and packaging capabilities in Arizona. This new commitment elevates TSMC’s total planned investment in the U.S. to $265 billion. The company announced this expansion alongside its second-quarter financial results on July 16. The plan includes the development of four new advanced semiconductor fabrication 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 the new facilities will include logic wafer fabs for 2-nanometer and smaller process nodes. The initiative also encompasses state-of-the-art packaging plants for finished semiconductor products. These manufacturing processes are critical for high-performance computing, data centers, smartphones, and other cutting-edge electronics. Chairman and CEO C.C. Wei emphasized that the project aims to meet the demands of major U.S. clients. He also highlighted that the expansion will create more high-tech jobs and bolster the domestic semiconductor supply chain.
This latest pledge follows TSMC’s earlier commitment of $165 billion for U.S. investments. That plan comprised six chip fabrication facilities, two advanced packaging plants, and an R&D center in Arizona. In March 2025, TSMC increased its initial $65 billion commitment by an additional $100 billion. The current expansion brings the total investment to another $100 billion, with federal officials calling it the largest foreign direct investment in U.S. history.
Growth in advanced manufacturing
The announcement coincided with TSMC reporting record earnings for the second quarter. Revenue for the three months 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 surged 77.4% to NT$706.56 billion, or roughly $22 billion. The company also reported diluted earnings of NT$27.25 per share, which equals $4.31 per American depositary receipt.
Most of TSMC’s wafer revenue for the quarter was driven by advanced chip technologies. Chips produced at 7 nanometers or smaller accounted for 77% of total wafer sales. Specifically, 3-nanometer chips made up 30%, while 5-nanometer products contributed 33%. Chips at 7 nanometers supplied 11%, and 2-nanometer chips contributed their first 3%. High-performance computing accounted for 66% of the company’s revenue, increasing 20% from the first quarter. Smartphone devices represented 22% of sales.
Increased capital expenditure forecast
TSMC has revised its capital expenditure forecast for 2026 upward to a range of $60 billion to $64 billion. Previously, the company guided towards the upper end of a $52 billion to $56 billion range. The majority of this budget—70% to 80%—will be allocated to advanced process technologies. An additional 10% to 20% will go toward advanced packaging, testing, mask production, and related fields. About 10% of the planned spending will be dedicated to specialty technologies.
For the third quarter, TSMC projects revenues between $44.6 billion and $45.8 billion. The company anticipates a gross margin of 65% to 67% and an operating margin of 56% to 58%. It also increased its full-year revenue growth estimate 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 operations in Arizona.