TSMC announces additional $100 billion investment in Arizona operations

The Taiwan Semiconductor Manufacturing Company plans to pour another $100 billion into its TSMC Arizona operations in Phoenix, the microchip industry giant revealed during an overnight earnings report.

Phoenix Mayor Kate Gallego celebrated the announcement, calling it “incredible news.”

“TSMC will invest an additional $100 billion right here in Phoenix, bringing its total investment to $265 billion. It’s the largest deal in U.S. history and cements our city as the heart of America’s technology manufacturing economy,” Gallego said in a Thursday morning post on X.

C.C. Wei, chairman and CEO of TSMC, cited the company’s strong support from U.S. customers as well as federal, state and local governments when revealing the new investment.

“This is to build several more semiconductor logic wafer fabs for 2nm and below technologies, as well as advanced packaging fabs, to support the strong multiyear demand from our leading U.S. customers,” Wei said. “We believe this investment will help to further foster the development of the U.S. semiconductor ecosystem, strengthen the supply chain and support an increasing number of high-tech, high-paying jobs in the United States.”

The world’s largest contract chip manufacturer also announced that it was raising its annual revenue forecast after booking record high profits thanks to runaway demand from the boom in artificial intelligence.

AI-related demand globally continues to be “extremely robust,” Wei said, as the “AI megatrend continues to drive the need for more and more computation.”

$100 billion TSMC Arizona investment lauded as ‘defining moment’ for Phoenix

Phoenix Councilwoman Ann O’Brien called the news “another defining moment” for the city.

“As the councilwoman representing TSMC Arizona and chair of the city’s Economic Development Subcommittee, I’m proud that north Phoenix continues to lead one of the most important manufacturing and innovation hubs in the world,” O’Brien said in a statement.

The Trump administration said the new investment was related to the U.S.-Taiwan trade agreement that was completed earlier this year.

“TSMC’s announcement of an additional $100 billion investment following our historic deal on trade and investment with Taiwan will create tens of thousands of American jobs and bring advanced semiconductor manufacturing back to America,” Commerce Secretary Howard Lutnick said in a statement.

In November 2024, TSMC Arizona received $6.6 billion in direct funding via the CHIPS and Science Act, a Biden-era law that allocated billions of dollars to support the nation’s semiconductor manufacturing industry.

In January, TSMC paid nearly $200 million for land south of its sprawling campus near 43rd Avenue and Dove Valley Road in northwest Phoenix.

The Associated Press contributed to this report.

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