TSMC Pledges $100 Billion to Expand Arizona Chip Plants

Taiwan Semiconductor Manufacturing Company (TSMC) announced a $100 billion investment to expand its manufacturing capacity in Arizona on July 16, 2026. This commitment brings the company's total planned U.S. investment to $265 billion and will fund the construction of four additional fabrication plants and a packaging facility, specifically targeting 2-nanometer and smaller advanced chips.

The expansion follows a trade and investment agreement between the Government of the Republic of China and the Trump administration, which reduced U.S. tariffs on Taiwanese goods in exchange for tech sector investments. Commerce Secretary Howard Lutnick stated the move would create tens of thousands of American jobs, characterizing it as a success for President Donald Trump's domestic manufacturing goals.

TSMC reported record second-quarter results with a net profit of $22 billion, a 77% increase year-over-year, and revenues of $40.2 billion. Driven by what CEO C.C. Wei called a "multi-year AI megatrend" and "extremely robust" global demand for AI computation, the company raised its 2026 annual revenue growth forecast to over 40%. To support this growth, TSMC increased its 2026 capital expenditure budget to between $60 billion and $64 billion. The company also reported its first revenue from 2-nanometer chips and noted that agentic AI is driving increased CPU demand in data centers.