By Rajwa Quasim
Taiwan Semiconductor Manufacturing Company (TSMC), the world’s biggest contract chipmaker, is set to invest $100 billion to expand its manufacturing operations at Arizona. The investment aligns with President Donald Trump’s efforts to bring more chip manufacturing back to American soil.
This $100 billion is on top of the $165 billion TSMC had already promised for building chip factories in the U.S. CEO C.C Wei said the new investment would likely include four more plants in Arizona, including facilities for advanced packaging, adding to the eight already planned. However, he noted the timelines for these additional plants would depend on how market conditions play out.
TSMC raised its forecast for capital spending by up to 14% this year. TSMC’s Q2 profit jumped 77% to a record T$706.6 billion ($22 billion), easily beating market forecasts of T$632.6 billion and marking its ninth straight quarter of double-digit growth. These numbers provide a glance on ongoing global rush to build artificial intelligence infrastructure. The demand has turned into a major windfall for chipmakers like TSMC, driving up both orders and prices.
READ: Nvidia announces new AI model, expands Japanese partnerships (July 16, 2026)
Wei said the emergence of agentic AI is reviving the role of CPUs in AI data centers, driving demand for more silicon in addition to AI chips.
The company raised its 2026 revenue growth forecast to more than 40% in dollar terms from projection of over 30%. For the current quarter, it forecasts sales between $44.6 billion and $45.8 billion, up from $33.1 billion a year earlier.
TSMC also increased its capital spending forecast to $60 billion and $64 billion, well above its previous guidance of $52 billion to $56 billion and indicated that spending for the next three years will climb even further.
“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,” CEO Wei said, indicating that the investment would further help in building up of American semiconductor industry.
Trump had previously accused Taiwan of stealing American semiconductor business and had promised that before he leaves his office, he would bring back 50% of the world’s semiconductor manufacturing capacity to U.S.
In a separate announcement on Thursday, the U.S. Commerce Department said TSMC’s additional investment “highlights the Trump Administration’s commitment to strengthening domestic manufacturing and U.S. technological leadership through strategic partnerships and investment.”
READ: Microsoft trains sales staff to steer customers away from OpenAI, Anthropic (July 16, 2026)
The bigger U.S. push also comes on the heels of a trade agreement between Washington and Taipei. Earlier this year, Trump administration and Taiwan struck a deal in which Taiwanese companies committed to invest at least $250 billion in the U.S. tech sector in exchange of lower tariffs.
Analysts note that, the demand remains robust for TSMC’s 3 nanometre and 2 nanometre process chip technologies, as well as for its CoWoS, an advanced chip packaging technology. This has pushed to its current market value up to $1.97 trillion, nearly double that of its South Korean rival Samsung Electronics.