TSMC expands Arizona investment to $265 billion

Taiwan Semiconductor Manufacturing Co. (TSMC) is significantly expanding its footprint in the United States, with total pledged spending in Arizona reaching $265 billion following a recent $100 billion investment announcement. The expansion includes the development of multiple semiconductor fabrication plants, packaging and testing facilities, and research and development centers in the North Phoenix area.

Bank of America has raised its price target for TSMC to $590, citing the successful progress of the Arizona manufacturing operations. The company’s Arizona facilities reported NT$45 billion in second-quarter sales, a 145% year-over-year increase. Notably, net profitability margins at these facilities, excluding government subsidies, stabilized at 38% in the second quarter of 2026, a major recovery from the losses recorded in 2025.

The massive investment is reshaping the North Valley real estate market and driving growth for supply chain vendors. Additionally, the Taiwanese government plans to open a representative office in Phoenix to strengthen trade ties and support ongoing investments in the region.