TSMC is committing another $100 billion to Arizona for at least four more chipmaking plants, pushing its total announced US investment to $265 billion.
CEO C.C. Wei announced the plans at the company's second-quarter earnings call in Taipei. The new fabs will target chips at the 2nm node and below, plus advanced packaging facilities, and at roughly $25 billion to $35 billion per fab module, $100 billion covers approximately four plants. TSMC did not attach a timeline, tying construction pace to market demand instead. The announcement follows a US-Taiwan trade agreement that cut tariffs on Taiwanese goods to 15% in exchange for roughly $250 billion in pledged US investment, and TSMC's open-ended commitment conveniently satisfies that without locking in a delivery date.
The packaging half of the deal deserves the headline. Advanced packaging capacity, not raw wafer output, is currently the binding constraint on AI accelerator production. Building that capability in Arizona would give US customers a complete domestic supply chain from wafer start to finished chip for the first time.
The backdrop is a company firing on all cylinders: TSMC posted net income of $22.35 billion for April through June, up 77.4% year over year and its fifth consecutive quarterly record, with gross margin at 67.7% and high-performance computing at 66% of revenue. Wei said demand should stay strong through 2029 or 2030, then hedged: "Whether there is a dip in between or not, I'm not very sure." Labor, water, and visa constraints in Arizona will shape how quickly these plants actually get built.