AI Demand Projected Through 2030! TSMC Adds $100 Billion Investment in U.S., Plans Four Additional Fabs, While Simultaneously Building 13 Advanced Facilities in Taiwan

The competition in AI infrastructure continues to intensify, and TSMC (2330), the global leader in semiconductor foundry services, is accelerating its global footprint. During its earnings call, Chairman and President C.C. Wei revealed that TSMC has announced an additional $100 billion investment in Arizona, increasing its total investment in the region to $265 billion. This new investment is expected to add approximately four, or even more, new facilities, encompassing sub-2nm advanced process technologies and advanced packaging capacity. On the other hand, TSMC will simultaneously construct 11 wafer fabs and 4 advanced packaging plants in Taiwan over the next few years, demonstrating that amid rising AI demand, TSMC’s global expansion remains unabated.

During the earnings call, institutional investors further inquired about the actual scale of the new investment. Wei stated that this additional investment 'will probably allow us to add four fabs or more,' but emphasized that the rollout will still proceed gradually based on market demand and customer timelines.

He further explained that the new investment will not be limited solely to wafer fabs but will also include backend advanced packaging and related facilities. The overall plan retains significant flexibility and will be adjusted further according to future customer needs.

Wei pointed out that TSMC’s first fab in Arizona has already begun mass production of its 4nm process, the second fab will adopt the 3nm process, and the third will manufacture 2nm and A16 processes. Once this new investment is completed, TSMC’s U.S. site will further expand its sub-2nm advanced process and advanced packaging capabilities to support long-term demand from local AI, high-performance computing (HPC), and cloud customers.

TSMC has already secured a large tract of land south of its existing campus, ensuring continued expansion potential. 'The land has already been purchased,' Wei noted, adding that the incremental land cost is relatively low compared to the overall construction investment, allowing the company to maintain ample capacity expansion flexibility in the coming years.

Despite ongoing overseas investments, Wei emphasized that Taiwan will remain TSMC’s most critical base for advanced process technologies and R&D. He stated that the company will continue building 11 wafer fabs and 4 advanced packaging plants in Taiwan over the next few years, covering 2nm, A16, and even more advanced process generations, while also expanding CoWoS and other advanced packaging capacities to meet global AI customer demand.

In other words, the new facilities in the U.S., Japan, and Europe are not intended to replace Taiwan but are strategic moves to meet local supply demands from global customers and enhance supply chain resilience. The development and primary mass production of the most advanced processes will continue to be centered in Taiwan.

Beyond the U.S., TSMC’s expansions in Japan and Europe are also progressing. Wei stated that the first wafer fab of JASM in Japan has already begun mass production, primarily serving CMOS image sensors (CIS), automotive, and industrial applications. The second plant is under ongoing construction. As for ESMC in Germany, it will also focus on automotive and industrial market needs, reflecting that TSMC’s overseas deployment of mature processes is increasingly targeting high-value-added applications rather than broadly expanding traditional mature process capacity.

In response to external concerns about whether such massive global investments indicate that AI demand will persist for many years, Wei gave a definitive yes. He explained that building a semiconductor fab—from planning and construction to equipment installation and full-scale mass production—is inherently a multi-year investment. Therefore, TSMC does not make expansion decisions based on short-term orders but rather on its customers’ multi-year product roadmaps and market demand.

He emphasized that TSMC sees not only the direct demand from its customers but also the multi-year AI infrastructure blueprints of major cloud service providers (CSPs). As a result, the company is confident in its ability to continuously expand capacity to support long-term AI growth. 'We are seeing multi-year demand, not just one or two quarters ahead,' said Wei.

At the same time, TSMC has once again raised its capital expenditure for this year to between $60 billion and $64 billion. Wei stated that the primary reason for increasing investment is the continued rise in customer demand, followed by cost pressures from rising semiconductor equipment prices. He also revealed that capital expenditures over the next three years will be 'significantly higher' than those of the past three years, reflecting the company’s strong confidence in sustained AI-driven growth.

As AI computing demand rapidly increases, TSMC is simultaneously launching a new round of global capacity expansion—from Arizona in the U.S. and Kumamoto in Japan to Hsinchu, Taichung, and Kaohsiung in Taiwan—signaling that the AI infrastructure race has evolved into a comprehensive competition spanning chip design, advanced processes, and manufacturing capacity.