TSMC gets $20 billion approval for Arizona fab expansion as Goldman drops chipmaker from conviction list

Goldman Sachs removed Taiwan Semiconductor Manufacturing Co. (TSMC) from its APAC Conviction List on 1 July 2026, a move that coincided with a broader sell‑off in the chip sector. TSMC shares fell 6.9 % on Wednesday and a further 2.1 % on Thursday, amid analyst concerns about a valuation bubble driven by AI‑related demand.

At the same time, Taiwan’s Ministry of Economic Affairs approved a new USD 20 billion capital injection for TSMC’s wholly‑owned Arizona subsidiary. The funding, the sixth approved U.S. investment by the company, brings the total cleared for its American operations to USD 44 billion. The money will be used to build a 12‑inch wafer fabrication plant and an advanced packaging facility in Arizona, supporting the growing need for AI chips.