TSMC is raising its 2026 capital budget to as much as $64 billion and adding $100 billion to its existing US investment as it races to meet surging AI-driven demand for advanced chips.
The world’s largest chip foundry announced on July 16 that it will expand its Arizona footprint to as many as 12 facilities, bringing total US investment to $265 billion — the largest single foreign direct investment in American history. The additional funding covers several new logic fabs for 2nm and below, plus advanced packaging plants.
“This is to build several more semiconductor logic wafer fabs for 2nm-and-below technologies, as well as advanced-packaging fabs,” CEO C.C. Wei said on TSMC’s Q2 earnings call. “We believe this investment will help to further foster the development of the US semiconductor ecosystem.”
The announcement follows TSMC’s June revenue surge of 68% year over year as AI chip demand from customers like Nvidia and AMD continues to outstrip supply. TSMC still cannot project when it will fully catch up with AI demand.
The $64B capex figure represents a significant step up from earlier 2026 guidance, compared to roughly $30B spent on capital investments in 2024. The new US pledge adds to a prior $165B commitment that was already the largest foreign direct investment in US history.
