TSMC will invest an additional amount equivalent to 87 billion euros, 100 billion dollars, in Arizona chip factories. The pledge was announced shortly after a record second-quarter profit, up 77 percent, and a raised capital spending forecast for 2026. CEO C.C. Wei pointed to a multi-year AI ‘megatrend’ as the driving force.
The world’s largest producer of advanced AI chips is doubling down on the United States. TSMC has thus added the 87 billion euro equivalent to earlier commitments worth roughly one hundred 43.6 billion euros.
The announcement arrived with strong numbers. Second-quarter profit jumped 77 percent to a record 19.1 billion euros, beating forecasts and extending the win streak to a ninth straight quarter of double-digit growth. This builds on the record revenue TSMC reported earlier this week, when Taipei-listed sales came in at the high end of guidance.
AI demand keeps climbing
Wei left little doubt about what is fuelling the spending. “Our conviction in the multi-year AI megatrend remains very high,” he told an earnings call. The company raised its 2026 capital expenditure guidance by up to 14 percent, now expecting between 52.2-55.7 billion euros. Spending over the next three years will be “even more significantly higher” than the past three.
That confidence has a track record behind it. TSMC and Nvidia already began mass production of Blackwell chips at the Phoenix site. The company has also warned it expects the AI chip shortage to persist for years, tying its US expansion directly to that gap.
More plants in Arizona
Wei said four additional plants would probably be built, including facilities for advanced packaging, on top of the eight already under construction or planned. The timeline for the extra ones depends on the “market situation.” Apple is also directing part of its 500 billion dollar US investment toward TSMC’s Fab 21 in Arizona.
Full-year 2026 revenue is now expected to rise slightly more than 40 percent in dollar terms, up from a previous forecast of more than 30 percent. Demand for TSMC’s 3-nanometre and 2-nanometre nodes, along with its CoWoS packaging, remains strong. Its market value now sits near one trillion seven hundred ten billion euros, roughly double that of Samsung. Taipei-listed shares have gained 59 percent this year.