Major Taiwan computer chipmaker TSMC said Thursday it plans to spend another $100 billion on expanding its manufacturing capacity in the United States.
The latest commitment appears to bring the company’s total pledges for investment in U.S. chipmaking to $265 billion. It also raised its annual revenue forecast after booking record high profits thanks to runaway demand from the boom in artificial intelligence.
TSMC, or Taiwan Semiconductor Manufacturing Co., is a key supplier to Nvidia and Apple. It had previously already committed $165 billion in the U.S. in building plants in Arizona, with six fabrication facilities planned.
C.C. Wei, chairman and CEO of TSMC, said during the company's quarterly earnings conference on Thursday that it’s pledging another $100 billion of investments in Arizona.
TSMC on Thursday reported a record 706.6 billion new Taiwan dollars ($22 billion) in net profit for the April-June quarter, up 77% from a year earlier, better than what analysts had expected.
The chip company, the world's largest contract chipmaker, said it is increasing its annual capital expenditure budget to $60 billion-$64 billion for this year, up from an earlier estimate of $52 billion-$56 billion.
As AI-related demand continues to surge, TSMC has been expanding chip fabrication plants in the U.S., Japan and Taiwan, with a focus on making more advanced 3-nanometer semiconductors that are used in smartphones and AI products.
