Taiwan Semiconductor Manufacturing Co. announced an additional $100bn investment in Arizona on Thursday, bringing its total pledged US outlay to $265bn, as the world’s largest contract chipmaker reported a 77.4% year-on-year surge in second-quarter net profit to NT$706.6bn ($22bn). The twin announcements, made during the company’s earnings conference, underscore how the global race to build AI infrastructure is reshaping both TSMC’s balance sheet and the geography of advanced semiconductor production.

The profit jump—from NT$398bn a year earlier—was propelled by insatiable demand for the high-performance chips that power data centres and AI applications. Revenue rose 36% to NT$1.27 trillion, with advanced 7-nanometre and smaller processes accounting for 77% of wafer sales. Gross margin reached 67.7%, exceeding the company’s own guidance. TSMC raised its 2026 sales growth forecast to more than 40% in US dollar terms, up from an earlier estimate of closer to 30%, and lifted its capital expenditure budget for the year to $60bn–$64bn, from $52bn–$56bn previously.

The fresh US commitment will fund four or more additional fabrication plants in Arizona, producing chips on 2-nanometre and more advanced nodes, as well as advanced packaging facilities. Chairman C.C. Wei declined to give a construction timeline, saying progress would depend on market conditions and customer demand, but stressed the company would move “as fast as possible” to narrow a wide supply–demand gap. The expansion adds to an existing $165bn Arizona plan that already includes six fabs, a research centre, and packaging operations. Viewed from Washington, the investment aligns with President Trump’s push to onshore critical supply chains; the Commerce Department said the move would create tens of thousands of high-paying jobs. In January, the US agreed to cut tariffs on Taiwanese goods to 15% in exchange for large-scale semiconductor investment.

On the technology roadmap, TSMC confirmed that commercial production of its next-generation A14 process—the second iteration of its nanosheet transistor architecture—is scheduled for 2028. The node promises a 10–15% speed gain or 25–30% power reduction over the current 2nm process, with logic density improving by nearly 20%. Around 70–80% of this year’s capex is earmarked for advanced process technologies, while 10–20% goes to advanced packaging, testing, and photomasks.

The company guided third-quarter revenue to $44.6bn–$45.8bn, implying a sequential increase of about 12% at the midpoint. With AI-driven orders still outstripping capacity, the next factual milestone for investors will be the pace at which the new Arizona fabs move from planning to construction, and whether the A14 process remains on track for 2028 mass production.