Taiwan’s chip giant TSMC reported a record quarterly profit and said it will invest a large chunk of its windfall in the United States. The company will spend a further $100 billion in the state of Arizona.
The group currently has three fabs – specialized production facilities for semiconductors – in various stages of development on its campus at Phoenix, but plans to build six fabs in total, plus two advanced packaging facilities on that site.
Chairman CC Wei stated that the AI trend continues to drive the need for more computation. They now expect their full-year 2026 revenue growth to be slightly above 40% year-over-year in US dollar terms.
TSMC’s net profit for April to June surged 77.4% year-on-year to NT$706.6 billion ($22 billion), well over analyst estimates. Quarterly revenue rose 36% to NT$1.3 trillion.
The company will spend an additional $100 billion building fabs in Arizona, which would take TSMC’s total investment plans in the United States to $265 billion. This investment is to build several or more semiconductor logic wafer fabs for 2-nanometre and below technologies as well as advanced packaging fabs.
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Chief financial officer Wendell Huang said TSMC will increase its 2026 capital expenditure budget to between $60 billion and $64 billion “as they continue to invest heavily to support their customers’ growth”.
Ahead of the results, Counterpoint Research senior analyst William Li said TSMC’s surge in revenue showed “AI infrastructure investment remains exceptionally strong despite macro uncertainty.” Li noted that “EUV supply constraints and overseas fab investments may limit capacity expansion and weigh on margins in the near term.”
TSMC’s investment in Arizona is a notable example of a company expanding its production capacity to meet growing demand for AI technology.
They are moving “as fast as possible” to increase chipmaking capacity in Taiwan, Japan, and the United States to try to catch up to customer demand. The demand and supply gap is significant, and the company is working hard to narrow it.
