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TSMC pledges extra US$100 billion for Arizona fab expansion amid soaring AI chip demand

Taiwan Semiconductor Manufacturing Co. (TSMC) announced an additional US$100 billion investment to expand its Arizona facilities, bringing its total US commitment to US$265 billion, as the chipmaker races to meet surging AI-driven demand. Chairman CC Wei said the funds will support 2-nanometer and below technologies, as well as advanced packaging fabs, to serve leading US customers. The move follows TSMC's record second-quarter net income of NT$706.6 billion (US$22 billion), up 77% year-over-year.

read1 min views1 publishedJul 16, 2026
TSMC pledges extra US$100 billion for Arizona fab expansion amid soaring AI chip demand
Image: Scmp (auto-discovered)

Riding on the AI boom, the Taiwanese chipmaker’s net income jumped 77 per cent to NT$706.6 billion (US$22 billion) in the second quarter

(TSMC)has pledged an additional US$100 billion to expand its manufacturing facilities in Arizona, boosting the company’s US investment to US$265 billion, as the chip foundry rushes to meet booming demand driven by artificial intelligence.

TSMC chairman CC Wei said the firm planned to proceed “as fast as possible” with the new Arizona investment but declined to provide a timeline, noting that progress would “depend on the market situation and our customers’ demand”.

The additional investment was for “2-nanometre and below technologies, as well as advanced packaging fabs to support the strong multi-year demand from our leading US customers”, Wei said at the firm’s earnings conference on Thursday, after reporting record-high profits for the second quarter.

The US$100 billion is on top of the US$165 billion the company pledged for its Arizona complex in March 2025. At the time, TSMC boosted its original commitment of US$65 billion to US$165 billion, pledging to build three more fabrication plants, alongside two advanced packaging facilities and a research and development centre in Phoenix.

a new wafer fab in Japan,as the company raced to narrow a significant gap between AI demand and supply.

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