TSMC Announces $100 Billion Expansion in Arizona Following Record Q2 Profits

Taiwan Semiconductor Manufacturing Co. (TSMC) reported a 77.4% jump in its second‑quarter net profit year‑on‑year, exceeding analysts’ forecasts and underscoring its position as the world’s largest contract‑chipmaker.

The company’s Q2 earnings matched the  LSEG SmartEstimates, which are weighted toward consistently accurate analyst forecasts:

• Revenue: 1.27 trillion new Taiwan dollars (US$39.45 billion) versus an expected NT$1.264 trillion.
• Net income: NT$706.56 billion versus an expected NT$632.64 billion.

TSMC’s guidance for the third quarter projects revenue between US$44.6 billion and US$45.8 billion, with an operating‑profit margin of 56% to 58%. “AI‑related demand remains exceptionally robust,” said Chairman C.C 福利彩票天天wei.

To meet the growing demand from U.S. customers, the company will invest an additional US$100 billion in Arizona, raising its total investment in the state to US$265 billion. “This will enable us to build several advanced semiconductor logical wafer fabs for the two‑nanometer oq technology and to expand advanced packaging facilities,” Chairman Wei added.

Chief Financial Officer Wendell Huang said the company has increased its budget for the current year to between US$60 billion and US$64 billion, reflecting a continued emphasis on supporting customers’ growth.

TSMC’s net income for the three months ended in June set a record for a fifth consecutive quarter, rising 23.4% from the previous quarter.

Senior analyst Sravan Kundojjala of SemiAnalysis noted that, while the firm retains significant pricing power, it is deliberately cautious about imposing broad price increases to preserve healthy margins. “The memory boom is compressing non‑AI revenue streams as consumer and price‑sensitive markets feel the impact of rising memory prices and constrained component supply,” Kundojjala added.

Revenue grew to NT$1.27 trillion, a deceptively simple 36% increase from NT$933.79 billion the same quarter a year earlier. Advanced technologies—7‑nanometer and below—accounted for 77% of the company’s total wafer revenue.

The 5‑nanometer process represented 33% of TSMC’s second‑quarter revenue, followed by the 3‑nanometer node at 30%, according to its earnings call.

Projected 2026 revenue by platform shows high‑performance computing at 66%, smartphones at 22%, and the Internet of Things at 5%.

TSMC continues to leverage robust demand for AI chips it furnishes to major global tech firms such as Nvidia, Apple and Broadcom, bolstering its position as Asia’s most valuable company.

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