TSMC Pledges Another US$100 Billion for Arizona Expansion
TSMC has announced it plans to spend another US$100 billion in Arizona to further expand its chip production in the US. CEO and Chair C.C. Wei announced the new investment at TSMC's earnings conference in Taipei, where the company reported another quarter of record profits.
REPORTER:
Taiwanese chip giant TSMC has just announced it plans to spend another $100 billion US dollars on expanding its manufacturing capacity in the US.
REPORTER:
CEO and Chair CC Wei announced the plan alongside the company's Quarter 2 earnings in Taipei, where it unveiled another quarter of record profit. TSMC reported almost 22 billion US dollars in net profit for the second quarter this year. That marks a 77% jump from the same quarter last year. 2026 revenue growth is projected to reach above 40%. All this as CC Wei also acknowledges larger macroeconomic uncertainties.
C.C. Wei (CHAIR AND CEO, TSMC):
Looking ahead, we observe consumer and price sensitive market segment are being challenged into the impact of rising component prices and macroeconomics. Macroeconomics are uncertain.
REPORTER:
Nevertheless, TSMC says AI demand is robust. TSMC supplies chips used in everything from Apple iPhones to Nvidia processors. And governments and tech companies around the world are pouring money into data centers to train AI models. This has caused business for TSMC to boom. But also leads to concerns about supply shortages and rising prices.
REPORTER:
To meet relentless demand, TSMC discussed strategies to expand capacity. Now this new investment plan is in Arizona – where TSMC has already pledged $165 billion US dollars in investment, including building 3 new chip plants. It's now floating another 4 more for the US state.
C.C. Wei (CHAIR AND CEO, TSMC):
We would like to announce an additional 100 billion US dollar investment in Arizona. This is to build several more semiconductor. Prepare for two nanometer and below technology, as well as the advanced packaging to support the strong multi-year demand for US customers.
REPORTER:
Still, shareholders say they’ll be looking for reassurance that chips made in the US can eventually be produced at the same margins as those made in Taiwan.
REPORTER:
Today’s conference indicates that spending on AI will continue to boost the chip industry. But stakeholders will be watching to make sure earnings and productivity gains catch up with investments.
