Taiwan Semiconductor Manufacturing Co., the world's largest contract chipmaker, said Thursday it will invest an additional $100 billion to expand its chipmaking capacity in the United States. According to The New York Times, the pledge brings TSMC's total commitment to its fast-growing operations in Arizona to $265 billion.
The announcement came alongside blockbuster earnings. TSMC reported a record quarterly net profit, with second-quarter profit jumping more than 77% and beating analyst estimates, fueled by what the company and multiple outlets describe as surging demand for artificial intelligence hardware. Citing an "AI megatrend," TSMC also raised its 2026 outlook: Bloomberg reports the company lifted its capital spending projection from $52–56 billion to $60–64 billion, and raised its revenue growth forecast from more than 30% to more than 40% year over year in U.S. dollar terms.
The new U.S. spending formalizes a pledge that is part of a broader deal between Washington and Taipei. According to Bloomberg, a U.S. official said the $100 billion will fund four new chip fabs. TSMC has not set a fixed timeline for the additional investment, Crypto Briefing reports.
Markets reacted with caution rather than enthusiasm. Despite the earnings beat, TSMC's stock fell and Asian chip stocks slid, with a broader chip selloff overshadowing the results. MarketWatch noted that expectations for the company are now "exceptionally high," according to one fund manager.
Why it matters: TSMC makes the advanced chips that power nearly every major AI system, so its record profits and its massive American buildout are a real-time gauge of how durable — and how expensive — the AI boom is becoming.