TSMC to invest additional USD 100 billion in Arizona for advanced chip manufacturing: Report
Taipei, July 16
Taiwan Semiconductor Manufacturing Company will invest an additional USD 100 billion in Arizona as it plans to expand capacity to deliver advanced chips to the AI industry, Focus Taiwan reported.
The announcement was made by its chairman C.C. Wei on Thursday as the company announced blockbuster second quarter earnings with net profit zooming more than 77 per cent.
The company has also raised its sales forecast for 2026 to more than 40 per cent, making it the second increase this year on the back of surging AI demand. The optimism in the sales forecast comes at a time when the AI industry has committed massive investments to ramp up capacity to meet the surging demand.
With the announcement of an additional USD 100 billion, TSMC's total investment in its Arizona facility has reached USD 265 billion. The investments are expected to have four additional wafer fabs as well as advanced packaging facilities, the report quoted Wei as saying.
The company will proceed with the new investments "as fast as possible" in order to narrow the gap between demand and supply, the report added.
The company's robust second-quarter earnings were driven by strong demand for its leading-edge process technologies. The shipments of 2-nanometer accounted for 3% of total wafer revenue; 3-nanometer accounted for 30%; 5-nanometer accounted for 33%; and 7-nanometer accounted for 11%, the company said.
"Moving into third quarter 2026, we expect our business to be supported by continued strong demand for our leading-edge process technologies, including the steep ramp-up of our 2-nanometer technology," TSMC CFO Wendell Huang said.
The company's stellar performance comes amid rising volatility in AI stocks as investors weigh the sustainability of the massive AI investments and whether they will be able to turn them into cash flows. TSMC tends to benefit from the rising demand for semiconductors as it is the world's largest foundry serving some of the marquee names like Nvidia and Apple, among others.
— ANI
Reader Comments
Great news for the AI supply chain! The 2nm and 3nm nodes are critical for next-gen chips. As an investor, I'm bullish on TSMC. The 77% profit jump is incredible. India should partner more with TSMC rather than trying to reinvent the wheel from scratch.
While TSMC's success is impressive, I'm concerned about the concentration of advanced chip manufacturing in one country. Geopolitical tensions could disrupt supply chains. India needs to develop indigenous chip capabilities for national security, not just economic reasons. We can't rely solely on Taiwan or the US. 🇮🇳
$265 billion total investment in Arizona! That's incredible. But I wonder if the AI hype is sustainable. TSMC's earnings are phenomenal, but the volatility in AI stocks makes me nervous. Still, TSMC has Apple and Nvidia as customers, so they're well-positioned. Smart move by the chairman.
Good for TSMC, but honestly, this feels like a blow to India's chip ambitions. Our government announced the $10 billion semiconductor scheme, but global giants like TSMC are investing $100 billion in the US. We need to offer better incentives and faster approvals. Abhi aur mehnat karni padegi! 💪
Impressive numbers - 33% of revenue from 5nm and 30% from 3nm. The 2nm ramp-up will be exciting. TSMC's dominance in advanced nodes is unmatched. India should focus on mature nodes and specialty chips for automotive and IoT instead of trying to compete in the bleeding edge. Play to our strengths.