Taiwan Semiconductor Manufacturing Company (TSMC) has officially confirmed one of its most ambitious expansion plans in the United States following its record second-quarter earnings. Earlier this year, there were reports that TSMC was planning a $100 billion investment plan to add four more fabs to its Arizona campus. Now that the decision has been finalized, TSMC will further increase its investment in Arizona facilities.
Previously, TSMC’s investment in Arizona has reached approximately US$16.5 billion. This additional US$100 billion will make it one of the largest external investment projects in US history. It is worth mentioning that TSMC is not the only player in this investment boom. Its supply chain partners are expected to jointly contribute approximately US$30 billion of the total US$100 billion. This also means that more relevant companies in the industry are raising funds to establish new supply chain autonomy.
In January of this year, it was reported that TSMC purchased an additional 900 acres of land across the highway from its existing factory in northern Phoenix to prepare for further expansion of the park. Although TSMC is also investing in Taiwan at the same time, this additional financial support, which is expected to be up to US$100 billion, fully demonstrates its firm willingness to expand production capacity in the United States.
For a deal of this magnitude, funds would never be invested all at once, nor would they be limited to a single year. From project inception to completion, such capital expenditure plans usually take several years or even nearly ten years. This time span also coincides with the expected construction progress of new production capacity. Barring unforeseen delays, building a fab itself requires years of design, equipment procurement, and on-site construction.
TSMC has recently approved a record-breaking $45 billion capital expenditure plan for 2026 only, indicating that it will take about two years of expenditure accumulation just to meet the funding needs of the Arizona expansion plan. Considering that TSMC also needs to allocate funds for facility expansion in Taiwan, coupled with practical challenges such as skilled labor shortages and equipment procurement, the expansion project in Arizona is likely to take five years or more to be finalized.