TSMC Announces Additional $100 Billion Investment in the U.S.: Chairman Mark Liu Says More Than Four New Fabs to Be Built

TSMC (2330-TW)(TSM-US) held its earnings conference today (16th), announcing an expansion of its U.S. manufacturing plans. Chairman and CEO Mark Liu stated that, due to strong AI demand, the company has decided to invest an additional $100 billion in the United States. This will fund the construction of more than four new facilities, including front-end wafer fabrication and back-end advanced packaging, to support the long-term needs of U.S. customers.

TSMC previously planned a total U.S. investment of $165 billion, which included six new wafer fabs, two advanced packaging plants, and one major R&D center. With this additional $100 billion, the company’s total planned investment in the U.S. will reach $265 billion.

TSMC emphasized that, with support from major U.S. customers and U.S. federal, state, and local governments, it will expand its advanced semiconductor manufacturing footprint in the region. The new investment will primarily be used for 2-nanometer and more advanced process technologies, as well as increasing advanced packaging capacity, to meet the strong multi-year demand from U.S. customers.

TSMC noted that advanced processes—from technology development, product design, capacity preparation to mass production—can take over five years. Therefore, the company must plan capacity in advance based on customers’ multi-year product roadmaps and volume production schedules, rather than waiting for demand to materialize.

The company also stressed its close collaboration with customers and their customers, particularly taking into account data center deployment and chip demand from cloud service providers (CSPs). It uses both top-down and bottom-up approaches to cross-validate market assessments when making expansion decisions.

While expanding in the U.S., TSMC continues to increase investment in Taiwan. The company plans to build multiple advanced process and advanced packaging fabs in Taiwan over the coming years. Taiwan will remain TSMC’s most critical R&D and manufacturing base.

TSMC highlighted that expanding investment in the U.S. will help build a more complete local semiconductor ecosystem, strengthen supply chain resilience, and support U.S. customers’ innovation needs in AI and high-performance computing. As advanced processes and advanced packaging are deployed together in the U.S., TSMC’s local production system will gradually evolve from standalone wafer fabrication toward a more integrated front-end and back-end operation.

Although fab construction costs in the U.S. are higher and overseas volume production may dilute gross margins, TSMC believes the multi-year structural growth in demand from key U.S. customers justifies early capital investment and capacity preparation to capture long-term business opportunities in the AI market.