ARIZONA / RankWire.AI / – Taiwan Semiconductor Manufacturing Co. has increased its planned investment in Arizona by $100 billion. This move raises TSMC’s total U.S. investment to $265 billion and includes the development of four new advanced semiconductor manufacturing facilities. The expansion will bring the total number of manufacturing and packaging sites in the state to 12. TSMC revealed this development alongside its second-quarter financial results on July 16. The project ranks among the most significant foreign investment commitments in U.S. manufacturing history.
The new plants will feature logic wafer factories designed for 2-nanometer chips and other smaller process technologies. TSMC also intends to expand its advanced packaging capabilities for finished semiconductor products. These technologies are vital for 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 buildout remains the core of TSMC’s U.S. manufacturing footprint.
This latest commitment builds upon an already announced $165 billion plan, which included six fabrication plants, two advanced packaging facilities, and a research center. In March 2025, TSMC increased its original $65 billion commitment by an additional $100 billion. The recent announcement adds another $100 billion to this figure. Federal officials have called this combined program the largest foreign direct investment ever in the U.S. The total for manufacturing and packaging excludes the separate research center.
Expansion of advanced semiconductor production
TSMC paired its Arizona expansion announcement with record-breaking second-quarter results. Revenue reached NT$1.27 trillion, or $40.2 billion, for the quarter ending June 30. This was a 36% increase compared to the same period last year in Taiwan dollar terms. Net income surged 77.4% to NT$706.56 billion, approximately $22 billion. Diluted earnings per share were NT$27.25, with each American depositary receipt earning $4.31 on a diluted basis. The results reflected strong sales from advanced process nodes.
Chips using 7-nanometer technology or smaller accounted for 77% of wafer revenue. Three-nanometer products contributed 30%, while 5-nanometer chips made up 33%. Seven-nanometer chips represented 11%. Two-nanometer chips contributed their first 3% share of quarterly wafer revenue. High-performance computing devices generated 66% of total revenue, up 20% quarter-over-quarter. Smartphone chips contributed an additional 22%, with other platform categories making up the remaining share.
Forecast for increased capital expenditure
TSMC has raised its 2026 capital expenditure forecast to between $60 billion and $64 billion, up from the previous range of $52 billion to $56 billion. The company plans to allocate 70% to 80% of this budget to advanced process technologies. An additional 10% to 20% will go toward advanced packaging, testing, mask production, and related services, while about 10% will fund specialty technologies. This revised forecast was announced alongside its quarterly earnings report.
For the third quarter, TSMC projects revenue between $44.6 billion and $45.8 billion, with a gross margin forecast of 65% to 67%. Operating margins are expected to be in the 56% to 58% range. The company also increased its full-year revenue growth outlook to slightly over 40% in U.S. dollar terms. Meanwhile, TSMC continues work on 13 advanced and leading-edge packaging facilities in Taiwan. The Arizona expansion significantly enlarges the company’s U.S. manufacturing network.