Taiwan Semiconductor Manufacturing NYSE:TSM is accelerating its Arizona expansion as it looks to capture what CFO Wendell Huang called a multi-year demand megatrend in artificial intelligence.
TSMC has added another $100 billion to its U.S. investment plans, taking its total Arizona commitment to $265 billion. The company also raised its 2026 capital spending forecast to $60 billion to $64 billion from $52 billion to $56 billion, a sign it expects AI demand to remain strong.
TSMC manufactures advanced chips for companies including Apple NASDAQ:AAPL, Nvidia NASDAQ:NVDA and AMD NASDAQ:AMD. Its factories sit at the center of the global semiconductor supply chain, especially for the leading-edge processors used in AI systems.
The company is already converting some 5-nanometer capacity to 3-nanometer production, while its first Arizona phase using 4-nanometer technology is operational. Huang said 2-nanometer chips should become a bigger revenue contributor beginning in the third quarter.