ARIZONA / RankWire.AI / – Taiwan Semiconductor Manufacturing Co. has committed another $100 billion to expand advanced chip production and packaging in Arizona. The new pledge raises TSMC’s planned U.S. investment to $265 billion. The company announced the expansion alongside its second-quarter results on July 16. The plan adds four advanced semiconductor manufacturing facilities. The U.S. Department of Commerce said the addition lifts the national manufacturing and packaging count to 12 facilities.
TSMC said the additional sites will include logic wafer plants for 2-nanometer and smaller technologies. The program also covers advanced packaging facilities for finished semiconductor products. These processes support high-performance computing, data centers, smartphones and other advanced electronics. Chairman and Chief Executive C.C. Wei said the project will serve demand from leading U.S. customers. He said the expansion will support more high-tech jobs and strengthen the domestic semiconductor supply chain.
The latest commitment follows TSMC’s previous $165 billion U.S. investment plan. That program included six chip fabrication plants, two advanced packaging facilities and a research and development center in Arizona. In March 2025, TSMC increased its original $65 billion commitment by $100 billion. The latest addition raises the combined total by another $100 billion. Federal officials called the expanded program the largest foreign direct investment commitment in U.S. history.
Advanced manufacturing expands
The announcement came as TSMC reported record second-quarter earnings. Revenue reached NT$1.27 trillion, equal to $40.2 billion, for the three months ended June 30. Revenue rose 36% from a year earlier in Taiwan dollar terms. Net income increased 77.4% to NT$706.56 billion, or about $22 billion. The company reported diluted earnings of NT$27.25 per share, equal to $4.31 for each American depositary receipt.
Advanced chips generated most of TSMC’s wafer revenue during the quarter. Technologies at 7 nanometers or smaller contributed 77% of the total. Three-nanometer products accounted for 30%, while 5-nanometer products contributed 33%. Seven-nanometer chips supplied another 11%, and 2-nanometer products made their first 3% contribution. High-performance computing represented 66% of company revenue after rising 20% from the first quarter. Smartphone products accounted for 22%.
Capital spending rises
TSMC raised its 2026 capital spending range to $60 billion to $64 billion. The company had previously guided toward the upper end of a $52 billion to $56 billion range. It plans to direct 70% to 80% of this year’s budget toward advanced process technologies. Advanced packaging, testing, mask production and related areas will receive 10% to 20%. Specialty technologies will account for about 10% of planned spending.
For the third quarter, TSMC expects revenue between $44.6 billion and $45.8 billion. It projects a gross margin of 65% to 67% and an operating margin of 56% to 58%. The company also raised its full-year revenue growth outlook to slightly above 40% in U.S. dollar terms. TSMC continues to build 13 leading-edge and advanced packaging plants in Taiwan while expanding its Arizona manufacturing base.