TSMC pledges $100 bn Arizona expansion, boosting US chip capacity

Taiwan Semiconductor Manufacturing Co. (TSMC) announced an additional $100 billion investment in the United States, raising its total Arizona commitment to $265 billion. The plan calls for up to four new 2‑nanometre fab lines and advanced packaging facilities, aiming to serve major U.S. customers such as Apple, Nvidia and Broadcom.

The announcement coincided with TSMC’s second‑quarter results, which posted a record $40 billion in revenue and a 77 % year‑over‑year profit rise to NT$706.5 billion. CEO C.C. Wei said the extra spending is needed to meet “strong multi‑year demand from our leading U.S. customers.” The U.S. White House and the Trade Department confirmed the expansion, noting it could create tens of thousands of jobs. No firm construction timetable was given, with the company saying timing will depend on market demand.

Following the earnings release, TSMC shares fell about 4 %, pulling down the Nasdaq‑100, as investors reacted to the higher capital‑expenditure outlook.