ARIZONA / RankWire.AI / – Taiwan Semiconductor Manufacturing Co. has pledged an additional $100 billion to broaden its advanced chip manufacturing and packaging capabilities in Arizona. This new commitment elevates TSMC’s total planned investments in the U.S. to $265 billion. The company revealed this expansion alongside its second-quarter earnings report on July 16. The plan includes the development of four new semiconductor manufacturing facilities. The U.S. Department of Commerce stated that this move increases the total number of manufacturing and packaging facilities nationwide to 12.
TSMC indicated that the new sites will feature logic wafer plants dedicated to 2-nanometer and smaller process nodes. The initiative also encompasses advanced packaging facilities for completed semiconductor products. These processes are essential for supporting high-performance computing, data centers, smartphones, and other sophisticated electronic devices. Chairman and CEO C.C. Wei noted that this project will meet the demands of leading U.S. clients. He also emphasized that the expansion will create more high-tech employment opportunities and bolster the local semiconductor supply chain.
This latest pledge follows TSMC’s earlier $165 billion U.S. investment plan, which included six chip fabrication plants, two advanced packaging centers, and an R&D facility in Arizona. In March 2025, TSMC increased its initial $65 billion commitment by an additional $100 billion. The current expansion raises the overall investment by another $100 billion. Federal officials described this program as the largest foreign direct investment ever made in the U.S.
Growth in advanced manufacturing
The announcement coincided with TSMC’s record-breaking second-quarter earnings. Revenue reached NT$1.27 trillion, equivalent to $40.2 billion, for the quarter ending June 30. This represented a 36% increase compared to 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 reported diluted earnings of NT$27.25 per share, which is about $4.31 per American depositary receipt.
The majority of TSMC’s wafer revenue during the quarter was driven by advanced chip technologies. Technologies at 7 nanometers or below contributed 77% of total wafer sales. Three-nanometer products accounted for 30%, while 5-nanometer chips contributed 33%. Chips built with 7-nanometer technology supplied an additional 11%, and 2-nanometer products made their debut with a 3% share. High-performance computing devices generated 66% of the company’s revenue, marking a 20% increase from the first quarter. Smartphone products made up 22% of sales.
Increased capital expenditure forecast
TSMC has revised its 2026 capital expenditure guidance upward to a range of $60 billion to $64 billion, up from the previous upper limit of $52 billion to $56 billion. The company plans to allocate 70% to 80% of this year’s budget to cutting-edge process technologies. The remaining 10% to 20% will be directed towards advanced packaging, testing, mask production, and related fields. About 10% of the planned spending will go toward specialty technologies.
For the third quarter, TSMC projects revenue between $44.6 billion and $45.8 billion. It anticipates a gross margin of 65% to 67% and an operating margin of 56% to 58%. The firm also raised its full-year revenue growth outlook to slightly above 40% in U.S. dollar terms. TSMC continues to develop 13 advanced and leading-edge packaging plants in Taiwan while expanding its manufacturing footprint in Arizona.