TSMC posts record profit, pledges $100B more for Arizona chip plants

Taiwan Semiconductor Manufacturing Co. (TSMC) reported a record net income of NT$706.56 billion for the second quarter, a 77.4% year-over-year increase and the fifth consecutive quarterly record. Revenue reached NT$1.27 trillion ($40.20 billion), up 36% year-over-year, exceeding Wall Street expectations. CEO C.C. Wei announced an additional $100 billion investment in Arizona, raising total committed spending to $265 billion, to build 2-nanometer fabrication and advanced packaging facilities, with up to four more plants possible depending on market conditions. TSMC raised its 2026 capital expenditure outlook to $60-$64 billion, up from $52-$56 billion, and indicated aggregate spending over the next three years would exceed the prior three years. For Q3, TSMC forecasts revenue of $44.6-$45.8 billion and operating profit margin of 56%-58%. CFO Wendell Huang cited demand for leading-edge technologies, including a steep ramp-up of 2-nanometer production. Chips on 7-nanometer or smaller nodes accounted for 77% of wafer revenue; 5-nanometer led with 33%, followed by 3-nanometer at 30%. June revenue hit a record NT$442.68 billion, a 67.9% jump. High-performance computing, including AI chips, generated 66% of Q2 revenue; smartphones contributed 22%. Shares closed up 1.23%.