TSMC adds $100 billion to US chip buildout

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TSMC said Thursday it will spend another $100 billion to expand its manufacturing capacity in the United States, pushing its total pledged investment in US chipmaking to $265 billion.

The Taiwanese company, formally Taiwan Semiconductor Manufacturing Co., had already committed $165 billion for plants in Arizona, where six fabrication facilities are planned. The new spending, CEO and chairman C.C. Wei said during the company’s quarterly earnings call, is meant to support demand from major American customers.

“We believe this investment will help to further foster the development of the U.S. semiconductor ecosystem, strengthen the supply chain and support an increasing number of high-tech, high-paying jobs in the United States.”

TSMC also raised its capital expenditure budget for this year to $60 billion-$64 billion, up from its earlier $52 billion-$56 billion forecast. The company said demand tied to AI remains “extremely robust,” with Wei adding that the “AI megatrend continues to drive the need for more and more computation.”

As the world’s largest contract chipmaker and a key supplier to Nvidia and Apple, TSMC is closely watched as a signal for both the broader semiconductor market and the strength of the AI boom, even as concerns about a possible AI bubble continue to rattle financial markets.

The company reported record net profit of 706.6 billion new Taiwan dollars ($22 billion) for the April-June quarter, up 77% from a year earlier and above analysts' expectations. TSMC said it is continuing to expand chip fabrication capacity in the US, Japan and Taiwan.

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