TSMC expands U.S. chip investment plan by another $100 billion as AI demand lifts profit outlook

TSMC said it plans to invest another $100 billion to expand manufacturing capacity in the United States, lifting its total pledged U.S. chipmaking investment to $265 billion. The company said the added spending would likely fund four more fabrication plants in Arizona focused on 2-nanometer-and-below chips, extending a U.S. expansion that previously included six planned fabrication facilities. The announcement came as TSMC reported record April-June net profit of T$706.6 billion, up 77% from a year earlier, on revenue of T$1.27 trillion, up 36%. Chairman and CEO C.C. Wei said AI-related demand remains "extremely robust" and raised the company’s forecast for 2026 revenue growth to slightly above 40% year-on-year from a previous outlook of over 30%. TSMC also increased its annual capital expenditure budget for this year to $60 billion-$64 billion from $52 billion-$56 billion as it expands capacity in the U.S., Japan and Taiwan. Wei said the new U.S. investment is intended to support strong multiyear demand from leading U.S. customers and help strengthen the semiconductor supply chain and broader U.S. chip ecosystem. The latest commitment builds on TSMC’s central role as a supplier to Nvidia and Apple and highlights how demand for AI computing infrastructure is driving chip manufacturing expansion. Earlier reporting had described a March 3, 2025 U.S. expansion plan centered on Arizona, including additional fabs, advanced packaging facilities and an R&D center. In the latest update, TSMC said the new $100 billion would likely add four more Arizona fabs and bring total pledged U.S. investment to $265 billion.