Taiwan Semiconductor Manufacturing Co.’s (NYSE:TSM) Arizona operations are reportedly on track for a sharp profit increase this year as strong demand for advanced AI chips accelerates the company’s U.S. expansion.
TSMC Arizona Plant Profit Surges
TSMC’s new Arizona plant generated about NT$36.1 billion ($1.13 billion) in cumulative profit during the first half of 2026, compared with NT$ 16.1 billion ($504.6 million) for all of 2025, according to Taiwan’s Money UDN.
The Arizona operation posted roughly NT$18.8 billion ($589.2 million) in profit in the first quarter alone, including about NT$16.9 billion ($529.66 million) in investment income.
The strong performance is attributed to increased customer orders, demand for geographically diversified production, and smoother supply-chain coordination.
Analysts expect TSMC’s full-year profit from the U.S. operation to improve significantly as production scales and the company benefits from economies of scale, the report said.
TSMC reported strong overall demand for its leading-edge technologies in the second quarter, with 2nm accounting for 3% of wafer revenue and 3nm contributing 30%.
TSMC Accelerates Arizona Fab Expansion
TSMC’s Arizona expansion is also moving faster than expected. Construction of its third wafer fab began in May, with the facility expected to support 2nm and A16 production.
The third fab could begin mass production around 2028, potentially several quarters earlier than previously anticipated, as customers seek additional U.S.-based capacity for advanced chips.
The company’s second Arizona fab, designed for 3nm production, has also been completed and is expected to receive equipment in the second half of 2026, with mass production targeted for the second half of 2027.
TSMC Raises US Investment to $265 Billion
TSMC Chairman CC Wei previously said the company would add another $100 billion to its U.S. investment, bringing its planned Arizona commitment to $265 billion.
The investment is being driven by strong, multi-year demand from U.S. customers for advanced AI and high-performance computing chips.
The company’s Arizona expansion also gives customers an alternative production base outside Taiwan, helping address geopolitical and supply-chain risks.
TSMC July Revenue Jumps 45% Amid AI Demand
TSMC reported consolidated revenue of approximately NT$467.58 billion in July, marking a 44.7% increase from NT$323.17 billion a year earlier.
July revenue also rose 5.6% from NT$442.68 billion in June, according to the company’s monthly revenue report. The latest figures underscore TSMC’s continued growth momentum through the first seven months of the year.
Price Action: TSMC closed at $426.35 on Friday, down 0.96%. The shares fell another 0.27% to $425.22 in after-hours trading, according to Benzinga Pro.
According to Benzinga Edge Rankings, TSMC ranks in the 97th percentile for Quality and has maintained positive price-trend ratings across the short, medium and long term.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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