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TSMC Raises Arizona Plan To $265 Billion After Profit Jump

BySendTech Times Chips & Compute DeskNewsroom-edited, source-reviewed coverage|Source: CNBC
Newsroom brief

CNBC reported that TSMC posted a 77.4% second-quarter profit jump and said its Arizona investment will rise to $265 billion after an additional $100 billion commitment. The report did not name the U.S. customers, fab opening dates, order volumes or pricing terms attached to the expanded plan.

Verified against source materialEdited by SendTech Times Chips & Compute Desk
TSMC Raises Arizona Plan To $265 Billion After Profit Jump
Image source: CNBC

TSMC second-quarter profit and Arizona investment plans moved together in CNBC's latest earnings report, with the chipmaker posting a 77.4% year-on-year profit jump and saying its total Arizona commitment will rise to $265 billion.

The report said Taiwan Semiconductor Manufacturing Co beat LSEG SmartEstimates for the quarter as the contract chipmaker continued a run of record milestones.

The company is expanding in the United States while demand for AI chips keeps advanced manufacturing capacity tight.

Arizona Investment Rises To $265 Billion

Wei said TSMC will invest an additional $100 billion in Arizona, bringing the company's total investment in the state to $265 billion.

The executive said the spending is intended to build several or more logic wafer fabs for two nanometer mass-production technologies, along with advanced packaging fabs for leading U.S. customers.

CFO Wendell Huang said the company also raised its budget for this year to between $60 billion and $64 billion to support customer growth.

The budget increase was not attached to a single named customer order.

Advanced Nodes Carried Most Wafer Revenue

The earnings report said TSMC's net income for the three months ended in June reached a record high for a fifth consecutive quarter and rose 23.4% from the previous quarter.

TSMC's reported revenue increased to NT$1.27 trillion, up 36% from NT$933.79 billion in the same period a year earlier.

The company said advanced technologies of 7-nanometer and under accounted for 77% of total wafer revenue.

Huang said on the earnings call that 5-nanometer process technology contributed 33% of second-quarter revenue, followed by 3-nanometer at 30%.

For 2026 revenue by platform, the company said high-performance computing accounted for 66% of revenue, followed by smartphones at 22% and Internet of Things at 5%.

The report identified Nvidia, Apple and Broadcom among the global technology companies whose AI-chip demand has supported the Taiwanese manufacturer.

SemiAnalysis Analyst Points To Pricing Restraint

SemiAnalysis analyst Sravan Kundojjala said TSMC has more pricing power than it is using.

He said the company is capturing more value through selective price increases while trying to keep margins healthy without squeezing customers.

Kundojjala also said the memory boom is squeezing TSMC's non-AI business, with consumer and price-sensitive end markets hit by rising memory prices and tight component supply.

The report did not name the U.S. customers behind the Arizona expansion, disclose chip-order volumes, set fab opening dates or publish pricing terms for the additional investment.

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