TSMC announces $100bn US expansion, Q2 net profit hits record on AI demand

Published Jul 24, 04:08 PM UTC

Taiwan Semiconductor Manufacturing Company (TSMC) announced a $100 billion expansion of its US operations, bringing total planned US investment to $265 billion. The investment will fund four additional advanced factories, raising the total to 12 semiconductor and packaging facilities in the US. The announcement coincided with record Q2 2026 earnings, where revenue reached $40.2 billion (up 36% YoY) and net profit hit an all-time high (up 77% YoY). AI chip demand, which now constitutes two-thirds of TSMC's business, is the primary growth driver. The company manufactures advanced AI chips for Nvidia, Amazon, and Google. TSMC began producing 4-nanometer chips in the US in late 2024 and expects to start 3-nanometer production by the second half of 2027. The expansion is tied to a broader US-Taiwan trade agreement. TSMC holds $110.56 billion in cash against $30.88 billion in debt, enabling self-funded expansion.