Taiwan Semiconductor Manufacturing Co. (TSMC) says it is speeding up construction of its second and third plants in Arizona “by several quarters” to meet robust demand from American customers such as Apple and Nvidia for smartphone and AI computing chips. The world’s largest contract chipmaker committed earlier this year to an additional $100 billion investment to build five more facilities in the state, including two chip packaging plants and the industry’s most advanced chip production of 2-nanometers and better.
Cheng Ting-Fang and Lauly Li for Nikkei Asia:
“After completion, around 30% of our 2-nanometer and more advanced [chip] capacity will be located in Arizona, creating an independent, leading-edge semiconductor manufacturing cluster in the U.S.,” TSMC Chairman and CEO C.C. Wei told investors and reporters in an earnings conference on Thursday.
The two planned advanced chip packaging facilities and an R&D center will “complete the AI supply chain” in the U.S., Wei added.
In the short term, TSMC expects revenue to grow more than 30% this year thanks to increasingly strong demand for AI, he said.
TSMC logged a record net profit of 398.27 billion New Taiwan dollars ($12.82 billion) for April-June, up 60.7% from the same period last year thanks to the ongoing AI boom. Revenue surged 38.6% on the year to NT$933.79 billion, also quarterly record.
TSMC expects to report record revenue for the current quarter of between $31.8 billion and $33 billion, which represents 38% year-on-year growth.
MacDailyNews Take: In April, TSMC hosted U.S. Secretary of Commerce Howard Lutnick in Phoenix where the company broke ground on its third fab facility in Arizona marking the 100th day of Trump administration.
The sky’s the limit for TSMC in America! – MacDailyNews, April 30, 2025
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