July 20, 2026 / SemiMedia / — Taiwan Semiconductor Manufacturing Co. plans to invest an additional $100 billion in its Arizona operations, raising its total planned investment in the state to $265 billion as customer demand for AI-related chips remains strong.

TSMC Chief Financial Officer Wendell Huang said the company is satisfied with the progress of its Arizona projects and continues to see structural demand extending over multiple years. The comments followed TSMC’s second-quarter results, which showed net profit rising 77% year over year to a record NT$706.6 billion.

The first Arizona fab is already operating, with manufacturing yields that Huang said are as good as those at TSMC’s main fabs in Taiwan. Achieving comparable yields is an important step in demonstrating that advanced manufacturing processes can be transferred to the U.S. site without a significant reduction in production efficiency.

TSMC’s second Arizona fab will soon begin moving in manufacturing equipment, while construction of the third fab is under way. Preparatory work has also started for a fourth fab and the site’s first advanced packaging facility.

Current and planned projects will expand TSMC’s Arizona presence to a total of 12 wafer fabrication and advanced packaging facilities, together with a research and development center. The company has not provided a detailed construction or production schedule for the latest investment.

Huang said the expansion faces physical constraints, including the availability of construction workers and supporting infrastructure. TSMC plans to work with the U.S. government to address the labor and infrastructure requirements associated with building several advanced semiconductor facilities in the same region.

Advanced packaging will be an important part of the Arizona expansion. AI accelerators require advanced logic dies, HBM and other chiplets to be integrated within complex packages. Adding packaging capacity alongside wafer fabs would allow more stages of the AI chip manufacturing process to be completed in the United States.

TSMC will continue expanding its manufacturing base in Taiwan at the same time. The company plans to build a combined 13 leading-edge wafer fabs and advanced packaging facilities there over the next several years.

Huang said available land in Taiwan will be prioritized for the most advanced technologies. New process nodes require close cooperation between research, development and manufacturing teams during their initial production ramps, so TSMC intends to stabilize leading-edge technologies in Taiwan before considering transfers to overseas sites.

The speed of the Arizona expansion will depend on customer demand, technology transfer, construction labor and the availability of local infrastructure.