Taiwan Semiconductor Manufacturing Co. (TSMC) announced on August 7, 2026, an additional $100 billion investment in the United States to build more advanced chipmaking and packaging facilities in Arizona [1, 2, 3, 4, 5]. This raises TSMC's total US investment commitment to $265 billion, with plans to add four new fabrication plants in the state [1, 3, 4].
The new fabs will focus on 2-nanometre and below process technologies along with advanced packaging to meet strong multiyear demand from leading US customers [3, 4, 5]. TSMC CEO CC Wei said the company intends to proceed "as fast as possible" with the investment but did not provide a timeline, stating progress will depend on market conditions and customer demand [1, 4, 5]. Wei added, "We believe this investment will help to further foster the development of the US semiconductor ecosystem, strengthen the supply chain, and support an increasing number of high-tech, high-paying jobs in the United States" [1].
TSMC currently has eight fabrication plants either built or planned in Arizona. The new investment could increase that total to 10 fabs, plus two advanced packaging facilities [1, 3]. The first Arizona fab began volume production of 4-nanometre chips in late 2024, and a second fab producing 3-nanometre chips is expected in the second half of 2026 [3].
TSMC reported a 77% rise in second-quarter net profit, reaching $22 billion driven by booming demand for AI-related chips [1, 4, 5]. The US Commerce Department credited former President Donald Trump’s leadership for encouraging companies like TSMC to increase domestic investment through tariffs and trade negotiations. Commerce Secretary Howard Lutnick said the announcement "will create tens of thousands of American jobs and bring advanced semiconductor manufacturing" [1].
A US-Taiwan trade deal struck in January 2026 reduced tariffs on Taiwanese goods to 15% in exchange for commitments from TSMC and others to invest more than $250 billion in US semiconductor projects [1, 3]. Earlier in March 2025, TSMC increased its US investment commitment to $165 billion under the Biden administration's Chips Act [3, 4].
TSMC will continue building its Arizona chip production capacity with the four new fabs focused on cutting-edge process technologies while monitoring market and customer needs for timing and scale [1, 3, 4].
