ARIZONA / RankWire.AI / – Taiwan Semiconductor Manufacturing Co. will add $100 billion to its planned investment in Arizona. The new commitment raises TSMC’s total U.S. program to $265 billion. It includes four additional advanced semiconductor facilities. The expansion brings the planned manufacturing and packaging network in Arizona to 12 sites. TSMC disclosed the investment alongside its second-quarter results on July 16. The U.S. Department of Commerce described the program as a major expansion of domestic chip production.
The new sites will include plants for advanced logic wafers using 2-nanometer and smaller process technologies. TSMC also plans added capacity for advanced semiconductor packaging. These operations support artificial intelligence systems, data centers, smartphones and high-performance computing products. Chairman and Chief Executive C.C. Wei said the facilities will serve leading U.S. customers. He also said the project will create high-tech jobs. Arizona remains the center of the company’s manufacturing operations in the United States.
TSMC previously outlined a $165 billion investment package for its Arizona operations. That plan covered six chip fabrication plants, two packaging facilities and a research and development center. The company increased its original $65 billion commitment by $100 billion in March 2025. The latest announcement adds another $100 billion. Federal officials said the combined commitment represents the largest foreign direct investment pledge in U.S. history. The manufacturing and packaging count does not include the separate research center.
Arizona chip network expands
The investment announcement accompanied another quarter of record financial results. TSMC reported revenue of NT$1.27 trillion, or $40.2 billion, for the three months ended June 30. Revenue increased 36% from the same period a year earlier in Taiwan dollar terms. Net income rose 77.4% to NT$706.56 billion, or about $22 billion. Diluted earnings reached NT$27.25 per share. Each American depositary receipt generated diluted earnings of $4.31.
Advanced process technologies accounted for most of the company’s wafer sales during the quarter. Chips using 7-nanometer technology or smaller produced 77% of wafer revenue. Three-nanometer products supplied 30%, while 5-nanometer products contributed 33%. Seven-nanometer products accounted for another 11%. Two-nanometer products made their first quarterly contribution at 3%. High-performance computing generated 66% of total revenue. Smartphone products represented 22% of company sales.
Spending outlook moves higher
TSMC raised its 2026 capital spending forecast to a range of $60 billion to $64 billion. Its previous estimate stood between $52 billion and $56 billion. The company plans to allocate 70% to 80% of spending to advanced process technologies. Advanced packaging, testing and mask production will receive 10% to 20%. Specialty technologies will account for about 10%. The U.S. Department of Commerce said the Arizona expansion will increase domestic capacity for advanced chips and packaging.
For the third quarter, TSMC forecast revenue between $44.6 billion and $45.8 billion. The company expects a gross margin of 65% to 67%. It projects an operating margin between 56% and 58%. TSMC also lifted its full-year revenue growth forecast to slightly above 40% in U.S. dollar terms. The company continues work on 13 leading-edge and advanced packaging plants in Taiwan. Its Arizona investment creates a larger U.S. base within that global manufacturing network.