TSMC to Spend Additional $100 Billion on U.S. Chip Plants

Taiwan Semiconductor Manufacturing Co. announced on July 16 that it will spend an additional $100 billion to expand chip manufacturing capacity in the United States. The commitment brings the company's total U.S.

Investment pledges to $265 billion. The new funds will support four additional fabrication plants in Arizona focused on 2-nanometer and smaller chips. TSMC had previously committed $165 billion to build six fabrication plants in the state.

C.C. Wei, TSMC chairman and CEO, said the investments support strong multiyear demand from leading U.S. customers. He added that the spending will foster the U.S. semiconductor ecosystem, strengthen the supply chain and support high-tech jobs.

TSMC also raised its 2026 capital expenditure budget to $60 billion-$64 billion from the prior range of $52 billion-$56 billion. In its April-June 2026 quarter, the company reported net profit of 706.6 billion new Taiwan dollars, equivalent to $22 billion, up 77 percent from a year earlier. Revenue rose 36 percent to 1.27 trillion new Taiwan dollars.

The company lifted its full-year 2026 revenue growth forecast to slightly above 40 percent from its previous projection of over 30 percent. Wei described AI-related demand as extremely robust and said it will remain very strong through 2029-2030. Earlier in 2026, the Trump administration and Taiwan agreed to reduce U.S.

Tariffs on Taiwanese goods in exchange for roughly $250 billion in new Taiwanese tech investments in the United States, including semiconductors. TSMC is the world's largest contract chip manufacturer and a key supplier to Nvidia and Apple.