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TSMC pledges $100 billion more investment in Arizona amid stronger AI outlook
TSMC lifted 2026 capital spending guidance to between $60 billion and $64 billion, after forecasting the pace of AI-related chip demand would remain durable.
TSMC pledged to invest an additional $100 billion in Arizona, citing continued strength in advanced AI chip demand and a push to expand semiconductor manufacturing in the United States, according to Reuters.
The Taiwan Semiconductor Manufacturing Co. raised its capital expenditure forecast for 2025 by up to 14% and said it expects 2026 capex to fall between $60 billion and $64 billion, up from prior guidance in the high end of $52 billion to $56 billion. TSMC also said capital spending over the next three years would be “even more significantly higher” than the prior three-year period.
TSMC’s outlook followed results in which second-quarter profit jumped 77% to a record high of T$706.6 billion, beating the market forecast of T$632.6 billion, marking its ninth straight quarter of double-digit growth. Reuters noted that TSMC is a major supplier to Nvidia and a bellwether for AI chip demand.
TSMC said its additional $100 billion investment would build on already announced plans to invest $165 billion in Arizona, with CEO C.C. Wei indicating four additional plants would likely be added for advanced packaging, though the timing would depend on market conditions. Wei added that the investment would help foster the US semiconductor ecosystem, strengthen the supply chain, and support high-paying jobs, Reuters reported.