The world’s largest contract chipmaker said it will invest a further $100 billion in Arizona, adding four or more new fabs dedicated to 2-nanometre-and-below logic processes and advanced packaging. The commitment takes TSMC’s total US investment to $265 billion, building on a prior $100 billion pledge made in March 2025 that had already brought its US total to $165 billion.

“The AI megatrend continues to drive the need for more and more computation, which supports the demand for leading-edge silicon,” said chairman and CEO C.C. Wei on the company’s post-earnings call, adding that customers had provided strong demand signals.

TSMC raised its 2026 capital expenditure guidance to $60-64 billion, up from a prior range of $52-56 billion, and now expects full-year revenue growth of more than 40% in US dollar terms, ahead of its previous forecast of above 30%. For the third quarter, TSMC guided revenue of $44.6-45.8 billion, with operating margin between 56% and 58%.

CFO Wendell Huang flagged a deterioration in gross margin tied to an “extreme” ramp-up of the company’s advanced 2-nanometre process, as TSMC continues to scale output to meet demand it has linked to the industry’s shift from generative to agentic AI workloads, which is increasing computing requirements across hyperscale data centres.

The results build on a strong start to the year for TSMC, which posted first-quarter revenue of $35.9 billion, up 40.6% year-on-year, alongside its previous $100 billion Arizona commitment.

Counterpoint Research senior analyst William Li said the results showed AI infrastructure investment remains exceptionally strong.

TSMC’s Arizona expansion forms part of a three-hub global manufacturing strategy spanning Taiwan, the US, and Japan, as the company continues to add capacity in response to what it describes as supply-constrained demand for advanced nodes.

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