SerpApi.Org
TSMC (TSM), the world's largest contract chipmaker, is racing to accelerate capacity at its Arizona factory as the company continues to see a “multi-year demand mega trend” from its customers, CFO Wendell Huang told CNBC.
TSMC, or Taiwan Semiconductor Manufacturing Co. (TSM), is scaling up its mega investment in Arizona by committing an additional $100B to aggressively expand its U.S. chipmaking footprint amid a surging multi-year structural demand for AI. The fresh commitment raises TSMC’s total investment pipeline in Arizona to $265B.
Speaking in an interview with CNBC’s Emily Tan, TSMC’s Huang said the fresh investment comes on the back of robust customer demand in the U.S. market and strong government support.
“We’re seeing this strong-structure, multi-year demand, and we do not plan to leave any food on the table for anybody else,” Huang said. “As long as the megatrend is right, then we’re able to continue to deliver the profitable growth to our shareholders,” he added.
In order to meet surging customer demand, TSMC is aggressively optimizing its leading-edge capacities, including a fast conversion of its 5-nanometer capacity to the advanced 3-nanometer node to support customers, Huang said.
When it comes to the Taiwan-based integrated circuit foundry service provider's U.S. expansion, phase one, using 4-nanometer technology, is already up and running, the CFO noted.
“It’s going to be bigger and bigger in the next few quarters,” Huang said, framing the 2-nanometer technology as the company’s newest revenue driver heading into the third quarter.
The nanometer figure refers to the size of each individual transistor on a chip. The smaller the transistor, the more of them can be packed onto a single semiconductor.
On Thursday, TSM — which produces chips for some of the world's largest tech companies, including Apple (AAPL), Nvidia (NVDA) and AMD (AMD) — said it now expects capital expenditure to be between $60B and $64B in 2026, up from $52B to $56B previously.
