TSMC Adds $100 Billion Arizona Investment, Total Hits $265 Billion

Taiwan Semiconductor Manufacturing Co. will spend another $100 billion on chip plants in Arizona, lifting its planned outlay in the state to $265 billion. The expansion adds to eight facilities already under construction or approved and targets two-nanometer logic wafers plus advanced packaging lines. Construction pace will hinge on customer demand, TSMC chairman C.C. Wei said.

The commitment arrives as the United States seeks to reduce reliance on overseas chip production after pandemic-era shortages. Wei stated the spending will strengthen domestic supply chains and support high-tech employment. Commerce Secretary Howard Lutnick linked the move to a January agreement that lowered U.S. tariffs on Taiwanese goods to 15 percent in return for semiconductor investment.

TSMC reported second-quarter net income of NT$706.56 billion, up from the prior year and above analyst forecasts, with revenue reaching NT$1.27 trillion. Advanced processes below 7 nanometers accounted for 77 percent of wafer revenue. The company raised its 2026 capital-spending range to $60-64 billion. Wei attributed continued strength to AI-related orders.

President Trump has cited earlier tariff threats as a factor in TSMC’s U.S. decisions. Wei offered no firm schedule for the newest plants, noting only that timing depends on market conditions. The added capacity is intended to serve leading U.S. customers over multiple years.