Taiwan Semiconductor Manufacturing Co (TSMC) will invest an additional US$100 billion in Arizona after reporting record second quarter earnings that comfortably beat market expectations, underscoring continued strong demand for artificial intelligence chips.
The world’s largest contract chipmaker posted a 77% jump in second quarter net profit to a record T$706.6 billion, surpassing analysts’ forecast of T$632.6 billion and marking its ninth consecutive quarter of double digit earnings growth.
TSMC also raised its 2026 capital expenditure guidance to between US$60 billion and US$64 billion, up from its previous forecast of US$52 billion to US$56 billion, reflecting confidence that demand for AI chips will remain strong.
The company now expects full year revenue in US dollar terms to grow by slightly more than 40% this year, compared with its earlier projection of more than 30%. For the third quarter, TSMC forecast revenue of between US$44.6 billion and US$45.8 billion, compared with US$33.1 billion a year earlier.
The additional US$100 billion investment will expand TSMC’s manufacturing footprint in Arizona, adding to the US$165 billion already committed to chip fabrication facilities in the state.
Demand for TSMC’s advanced three nanometre and two nanometre manufacturing technologies, as well as its CoWoS advanced chip packaging, continues to be fuelled by the rapid adoption of AI applications.
The company, which supplies major customers including Nvidia and Apple, now has a market capitalisation of about US$1.97 trillion, nearly double that of South Korea’s Samsung Electronics. Its Taipei-listed shares have climbed 59% this year and are up 120% over the past 12 months.
The upbeat results follow TSMC’s announcement earlier this week of a record 36% increase in second quarter revenue, while Dutch chip equipment maker ASML also recently raised its 2026 sales outlook, signalling sustained momentum across the global AI semiconductor industry.
Reuters
