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Taiwan Semiconductor Manufacturing Co. (TSMC), a major supplier to Nvidia and one of the world’s leading producers of advanced AI chips, pledged on Thursday to invest an additional $100 billion in Arizona, marking a major win for US President Donald Trump’s push to expand domestic semiconductor manufacturing. Reinforcing its bullish outlook on AI demand, the company also raised its 2026 capital spending forecast by up to 14%.
The latest commitment brings TSMC’s total planned investment in the United States to $265 billion, with Chief Executive C.C. Wei saying the expansion will likely include four additional facilities in Arizona. The announcement came alongside the company’s strong second-quarter earnings, with net profit surging 77% year-on-year.
TSMC reported a profit of $22 billion for the April-June quarter, up from $12.4 billion a year earlier. Its shares have climbed more than 55% this year, lifting the company’s market valuation to around $2 trillion.
Surging Demand riases Revenue
Driven by surging demand for advanced AI chips, TSMC’s additional $100 billion investment in Arizona builds on its previously announced $165 billion commitment to expand semiconductor manufacturing in the state. The move comes amid President Donald Trump’s push to boost domestic chip production and reduce U.S. reliance on overseas manufacturing.
The latest investment is expected to fund four additional facilities, including advanced packaging plants, taking TSMC’s planned US footprint to 12 manufacturing and packaging facilities. The timeline for the new plants will depend on market conditions. Separately, the US Commerce Department said the investment underscores the Trump administration’s efforts to strengthen domestic manufacturing, secure semiconductor supply chains, and reinforce US technological leadership through strategic partnerships.
Reciprocal Trade Agreement
The investment is expected to reinforce the reciprocal trade agreement signed between the US and Taiwan earlier this year, under which the US reduced tariffs and Taiwan pledged to increase investments. TSMC’s aggressive capital spending and strong profitability have made it a key indicator of demand in the global semiconductor industry.
The company now expects its 2026 revenue in US dollar terms to grow by more than 40%, up from its earlier forecast of more than 30%. For the current quarter, TSMC projects revenue of $44.6 billion to $45.8 billion, compared with $33.1 billion a year earlier.
Demand for TSMC’s 3-nanometre and 2-nanometre process technologies, as well as its CoWoS advanced chip packaging technology, remains strong, driven largely by AI workloads.
TSMC, a major supplier to Apple, now has a market capitalisation of about $1.97 trillion, nearly double that of Samsung Electronics. Earlier this week, the company reported a 36% year-on-year increase in second-quarter revenue, surpassing market expectations.
