TSMC has announced a $100B increase to its Arizona fab investment, bringing total planned US spending to over $165B. The expansion follows a record second quarter driven by insatiable demand for AI training and inference chips.
The additional investment will fund construction of two more advanced fabrication facilities in Arizona, bringing the total to six fabs at the site. TSMC’s Arizona campus will produce 3nm and 2nm class chips, with production ramping through 2028. The company also said it would raise mature-node foundry prices starting January 2027, citing increased equipment and materials costs.
TSMC reported strong second-quarter results with revenue significantly above analyst expectations, driven by orders from Nvidia, AMD, Apple, and its other major customers. AI-related chips now account for a growing share of TSMC’s total output.
The expanded Arizona investment marks a major milestone in the US push to reshore semiconductor manufacturing. TSMC originally committed $12B to the site in 2020, then grew it to $40B, and later to $65B. The latest commitment more than doubles the previous total.
