Advertisement
Semiconductors
TechTech War

TSMC pledges extra US$100 billion for Arizona fab expansion amid soaring AI chip demand

Riding on the AI boom, the Taiwanese chipmaker’s net income jumped 77 per cent to NT$706.6 billion (US$22 billion) in the second quarter

2-MIN READ2-MIN
2
Listen
A view of TSMC’s complex in Phoenix, Arizona, under construction earlier this year. Photo: UCG/Universal Images Group via Getty Images
Iris Dengin ShenzhenandRichard Chenin Hong Kong
Taiwan Semiconductor Manufacturing Co (TSMC) has pledged an additional US$100 billion to expand its manufacturing facilities in Arizona, boosting the company’s US investment to US$265 billion, as the chip foundry rushes to meet booming demand driven by artificial intelligence.

TSMC chairman CC Wei said the firm planned to proceed “as fast as possible” with the new Arizona investment but declined to provide a timeline, noting that progress would “depend on the market situation and our customers’ demand”.

The additional investment was for “2-nanometre and below technologies, as well as advanced packaging fabs to support the strong multi-year demand from our leading US customers”, Wei said at the firm’s earnings conference on Thursday, after reporting record-high profits for the second quarter.

The US$100 billion is on top of the US$165 billion the company pledged for its Arizona complex in March 2025. At the time, TSMC boosted its original commitment of US$65 billion to US$165 billion, pledging to build three more fabrication plants, alongside two advanced packaging facilities and a research and development centre in Phoenix.

TSMC chairman CC Wei at the company’s annual shareholders’ meeting in Hsinchu on June 3, 2025. Photo: AFP
TSMC chairman CC Wei at the company’s annual shareholders’ meeting in Hsinchu on June 3, 2025. Photo: AFP
Wei added that the firm was also accelerating the establishment of a new wafer fab in Japan, as the company raced to narrow a significant gap between AI demand and supply.
Advertisement
Select Voice
Select Speed
1.00x