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12 min ago 3 min read
Global semiconductor manufacturing giant TSMC will spend an additional $100bn to expand its manufacturing capacity in the US, adding to $165bn already pledged to build six fabrication plants in Arizona.
The new capital will go towards building four more fabs designed for 2-nanometre (2nm) and below technologies, in addition to advanced packaging fabs to support increased demand from US customers.
Chips at the 2nm node and below are engineered to handle the intense, resource-heavy demand of next-generation technology such as advanced AI and high-performance computing.
TSMC is currently experiencing record-breaking growth fuelled by the “multi-year AI megatrend.” The company reported a 77.4% year-on-year surge in second quarter net profit ($22bn) and raised its full-year 2026 revenue growth forecast to over 40%.
“The megatrend is so strong that we have announced an additional $100bn investment in Arizona,” said CEO C.C Wei during a second quarter earnings call yesterday.
“We believe this investment will help to further foster the development of the US semiconductor ecosystem, strengthen the supply chain, and support an increasing number of high-tech, high-paying jobs in the US.”
When asked about a timeframe, Wei said it depends on the market situation and the demand from customers.
“If you ask me to give you a firm schedule, no, we don’t have it today. But we do have a plan [and we are trying to] speed it up as fast as possible,” he added.
The announcement comes days after Air Liquide said it would in a new ultra-high purity gases plant in Arizona to supply the fab expansion of an advanced semiconductor node manufacturer.
Set to be operational in 2028, the plant will produce ultra-pure, low-carbon hydrogen with carbon capture technology, among other gases needed for chip production.
Earlier this year, Linde to bank on rising semiconductor gas demand from TSMC’s expanding Arizona complex.
A deal signed in 2021 with TSMC will see Linde invest around $600m to build, own, and operate on-site air separation units to the chip manufacturer’s ‘Fab 21’ facilities.
According to the Arizona Commerce Authority, since 2020, Arizona has won more than 60 semiconductor expansions, representing over $210bn in capital investment.
Outside of the US, TSMC is building 13 advanced packaging fabs in Taiwan over the next several years.
