ARIZONA / RankWire.AI / – Taiwan Semiconductor Manufacturing Co. has pledged an additional $100 billion to boost advanced chip manufacturing and packaging capabilities in Arizona. This new commitment elevates TSMC’s total planned U.S. investment 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 state-of-the-art semiconductor production facilities. The U.S. Department of Commerce stated that this addition brings the total number of manufacturing and packaging sites nationwide to 12.
TSMC indicated that these new sites will feature logic wafer fabs for 2-nanometer and smaller process nodes. The expansion also encompasses advanced packaging plants for finished semiconductor products. These processes are vital for high-performance computing, data centers, smartphones, and other cutting-edge electronic devices. TSMC Chairman and CEO C.C. Wei explained that the project aims to meet the demand from key U.S. clients. He added that the expansion will create more high-tech employment opportunities and reinforce the domestic semiconductor supply chain.
This latest pledge follows TSMC’s earlier commitment of $165 billion to U.S. investments. That plan included six chip fabrication plants, two advanced packaging facilities, and a research and development center in Arizona. In March 2025, TSMC increased its initial $65 billion commitment by an additional $100 billion. The recent expansion brings the total investment to over $265 billion. Federal officials described the program as the largest foreign direct investment ever made in the U.S.
Growth in Advanced Manufacturing
The announcement coincided with TSMC reporting record second-quarter results. Revenue hit NT$1.27 trillion, or approximately $40.2 billion, for the three months ending June 30. This marked a 36% increase from the same period last year in Taiwan dollar terms. Net income surged 77.4% to NT$706.56 billion, roughly $22 billion. The company reported diluted earnings per share of NT$27.25, equivalent to $4.31 per American depositary receipt.
The majority of TSMC’s wafer revenue for the quarter came from advanced chip technologies. Technologies at 7 nanometers or smaller made up 77% of the total. 3-nanometer products accounted for 30%, while 5-nanometer chips contributed 33%. Chips at 7 nanometers supplied another 11%, and 2-nanometer products contributed their first 3%. High-performance computing chips represented 66% of overall revenue, rising 20% from the previous quarter. Smartphone devices made up 22% of sales.
Increased Capital Expenditure
TSMC has adjusted its 2026 capital spending forecast upward to a range of $60 billion to $64 billion, surpassing its previous guidance of $52 billion to $56 billion. The company plans to allocate 70% to 80% of this year’s budget toward advanced process technologies. The remaining 10% to 20% will go toward advanced packaging, testing, mask production, and related sectors. About 10% of the total will be dedicated to specialty technologies.
For Q3, TSMC anticipates revenue between $44.6 billion and $45.8 billion. It projects gross margins of 65% to 67% and operating margins of 56% to 58%. Additionally, the company has raised its full-year revenue growth estimate to slightly over 40% in U.S. dollar terms. TSMC continues to develop 13 leading-edge and advanced packaging factories in Taiwan while expanding its manufacturing footprint in Arizona.