Taiwan Semiconductor Manufacturing Company (TSMC) will invest an additional $100 billion in its Arizona operations, raising its total committed US investment to $265 billion, CEO C.C. Wei announced during the company’s second-quarter earnings call on July 16.
Wei said the new funding will pay for at least four more leading-edge fabrication plants at TSMC’s Phoenix-area campus, targeting 2-nanometer and more advanced process nodes, along with additional chip-packaging capacity. Phoenix Mayor Kate Gallego and TSMC executives described the combined commitment as the largest single foreign direct investment in US history.
The expansion news landed alongside record results. Second-quarter revenue rose 36% year-over-year to $40.2 billion, and net income jumped 77.4% to a record NT$706.56 billion — TSMC’s fifth straight quarter of record profit. Chief Financial Officer Wendell Huang pointed to “strong demand for leading-edge process technologies” and said the company’s contract chipmaking business expects a “steep ramp-up” of 2-nanometer production in the third quarter.
Why now
Demand for the advanced chips that power AI accelerators — from Nvidia’s GPUs to custom inference silicon built by hyperscalers — has outstripped TSMC’s capacity for several quarters running. Advanced nodes of 7 nanometers and smaller now make up 77% of TSMC’s wafer revenue, and the company raised its 2026 capital-expenditure guidance to $60 billion–$64 billion, up from $52 billion–$56 billion.
TSMC gave no construction timeline for the new Arizona fabs, saying the pace will depend on how customer demand develops. Its existing Arizona site, already running fabs on 4-nanometer and 3-nanometer nodes, employs several thousand workers and is TSMC’s largest manufacturing footprint outside Taiwan.
For the third quarter, TSMC guided to revenue of $44.6 billion–$45.8 billion — continued growth even as chip stocks elsewhere wobbled this week amid renewed debate over whether AI infrastructure spending is outrunning near-term returns.