ARIZONA / RankWire.AI / – Taiwan Semiconductor Manufacturing Co. has added $100 billion to its planned investment in Arizona. The commitment lifts TSMC’s total U.S. program to $265 billion. It also adds four advanced semiconductor manufacturing facilities. The expansion will increase the company’s planned manufacturing and packaging sites in the state to 12. TSMC announced the move with its second-quarter financial results on July 16. The project ranks among the largest foreign investment commitments in U.S. manufacturing.
The new facilities will include logic wafer plants designed for 2-nanometer chips and smaller process technologies. TSMC also plans more advanced packaging capacity for completed semiconductor products. These technologies serve data centers, artificial intelligence systems, smartphones and other high-performance electronics. Chairman and Chief Executive C.C. Wei said the expansion will serve major U.S. customers. He also linked the project to high-tech employment and a stronger domestic supply chain. The Arizona buildout remains the center of TSMC’s U.S. production footprint.
The latest pledge builds on a $165 billion plan already announced by TSMC. That earlier package covered six fabrication plants, two advanced packaging facilities and a research center. In March 2025, the company raised its original $65 billion commitment by $100 billion. The new announcement adds another $100 billion to the total. Federal officials described the combined program as the largest foreign direct investment commitment in U.S. history. The manufacturing and packaging total excludes the separate research center.
Advanced chip production expands
TSMC paired the Arizona announcement with record second-quarter results. Revenue reached NT$1.27 trillion, or $40.2 billion, for the three months ended June 30. That figure rose 36% from a year earlier in Taiwan dollar terms. Net income climbed 77.4% to NT$706.56 billion, equal to about $22 billion. Diluted earnings reached NT$27.25 per share. Each American depositary receipt earned $4.31 on a diluted basis. The results included strong sales from advanced process technologies.
Chips made with 7-nanometer technology or smaller generated 77% of wafer revenue. Three-nanometer products contributed 30%, while 5-nanometer chips supplied 33%. Seven-nanometer products accounted for 11%. Two-nanometer chips made their first 3% contribution to quarterly wafer revenue. High-performance computing produced 66% of company revenue after a 20% quarterly increase. Smartphone products contributed another 22%. Other platform categories made up the remaining revenue.
Capital spending forecast increases
TSMC increased its 2026 capital spending forecast to between $60 billion and $64 billion. The previous range stood at $52 billion to $56 billion. The company plans to direct 70% to 80% of the budget toward advanced process technologies. Advanced packaging, testing, mask production and related operations will receive 10% to 20%. Specialty technologies will account for about 10%. The company announced the revised range with its quarterly earnings report.
For the third quarter, TSMC forecast revenue of $44.6 billion to $45.8 billion. It projected a gross margin between 65% and 67%. The company placed its operating margin range at 56% to 58%. TSMC also raised its full-year revenue growth outlook to slightly above 40% in U.S. dollar terms. At the same time, the company continues work on 13 leading-edge and advanced packaging plants in Taiwan. The Arizona expansion adds a larger U.S. base to that manufacturing network.