TSMC ups US Arizona spending by $100 billion and lifts capital outlay to $640 billion on booming AI demand

Taiwan Semiconductor Manufacturing Co. (TSMC) reported record second‑quarter results, with revenue of NT$1.27 trillion and net profit of NT$706.6 billion, a 77 % year‑on‑year increase. Chairman C. C. Wei said demand for AI chips remains “extremely robust,” driving the company’s outlook.

TSMC raised its 2026 capital‑expenditure guidance to $600‑$640 billion, up from the prior $520‑$560 billion range. Part of the increase includes an additional $100 billion investment in its Arizona operations, taking total US commitments to roughly $265 billion. The new funds will fund up to four more fabs focused on 2‑nanometre and advanced‑packaging capacity, with construction timelines extending beyond five years.

The firm emphasized that the most advanced process nodes will stay in Taiwan, while the Arizona expansion aims to secure supply for U.S. customers and reduce tariff exposure. Following the earnings release, TSMC shares rose about 1.2 % in Taiwan but fell roughly 4 % in U.S. trading, reflecting investor scrutiny of the massive outlay.