TSMC adds $100 billion to Arizona expansion as AI demand climbs

TSMC reported strong Q2 2026 results as AI demand continued to drive growth, while also committing an additional $100 billion to expand its Arizona manufacturing footprint. The chipmaker said Q2 revenue rose 36% year over year to NT$1,270.38 billion and net income jumped 77.4% to NT$706.56 billion. It raised 2026 capital spending guidance to $60 billion-$64 billion, with 70% to 80% earmarked for advanced process technologies including leading-edge 2nm production, and guided Q3 revenue to $44.6 billion-$45.8 billion with gross margin of 65% to 67%. Bloomberg said the new U.S. spending could fund four more Arizona fabs, potentially bringing the site to 10 chip plants and two advanced packaging facilities. The additional investment would lift TSMC’s total planned U.S. spending to $265 billion. The company has said its first Arizona fab is already operating at yield levels comparable with its flagship Taiwan plant, while more fabs and packaging capacity are under development. Even as it expands in the United States, TSMC has maintained that R&D and mass production of its most advanced process technologies will remain centered in Taiwan, China. The Arizona buildout also reflects supply-chain diversification efforts as well as sustained AI-related semiconductor demand.