TSMC has announced an additional investment of $100 billion to expand its manufacturing capacity in Arizona. The new factories will produce chips on 2nm and smaller nodes and are expected to include advanced packaging lines. TSMC's total planned investment in the US now stands at $265 billion.
Investment details
TSMC CEO C.C. Wei stated that the funds will cover the construction of at least four new logic chip factories as well as advanced packaging facilities. According to sources, the expansion should bring a total of 10 factories and two packaging lines. Each 2nm chip factory costs approximately $25–35 billion.
Impact on supply chain
Packaging capacity is crucial because CoWoS technology is currently a bottleneck for AI accelerator production. With local packaging, TSMC's US customers will have a complete domestic supply chain.
TSMC record results
The announcement came alongside another record quarterly result. Profit for April–June reached NT$706.56 billion (US$22.35 billion), up 77.4% year-over-year. Revenue rose 36% to NT$1.27 trillion, and gross margin hit a record 67.7%.
TSMC raised its full-year 2025 revenue growth forecast to slightly over 40% in USD. Capital expenditure for 2026 is expected to reach $60–64 billion, with 70–80% going towards advanced technologies.
Future and challenges
Wei expects strong demand at least until 2029–2030, but acknowledges possible fluctuations. Challenges in Arizona include labor, water, and visa constraints. TSMC also plans 13 new factories in Taiwan to balance concerns about production shifts.