Taiwan Semiconductor Manufacturing Co (TSMC) is accelerating construction of its Arizona chip plants to meet what it sees as a multi-year boom in artificial intelligence demand, Chief Financial Officer Wendell Huang said, as the world’s largest contract chipmaker deepens its U.S. manufacturing push.
The company is pressing ahead with a previously announced additional $100 billion investment in Arizona, lifting its total planned spending in the state to $265 billion as it seeks to expand advanced chip production closer to key U.S. customers.
“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 in an interview with CNBC.
“As long as the megatrend is right, then we’re able to continue to deliver the profitable growth to our shareholders,” he said.
The expansion comes as demand for AI chips continues to drive record spending by technology companies building data centres and AI infrastructure.
Huang said TSMC was increasing leading-edge manufacturing capacity, including converting more 5-nanometre production to its more advanced 3-nanometre process to meet customer demand.
The company’s first Arizona fabrication plant, which produces chips using 4-nanometre technology, is already operating.
“It’s going to be bigger and bigger in the next few quarters,” Huang said, adding that TSMC’s 2-nanometre technology, which began generating revenue in the second quarter, is expected to become a larger contributor in the current quarter.
Although building semiconductor plants in the United States costs four to five times more than in Taiwan, Huang said the overseas expansion would help strengthen the U.S. semiconductor supply chain over the long term.
“It will be both the front-end wafer fabs and back end advanced packaging fabs,” he said, referring to how the additional $100 billion investment would be deployed.
TSMC last week raised its full-year capital expenditure forecast to between $60 billion and $64 billion, reflecting confidence that AI-driven demand will remain strong into 2027.
Huang said the company remained focused on business fundamentals despite recent share price volatility.
“What we can do is really to focus on fundamentals of our business,” he said.
On China, Huang said TSMC continued to comply with all export control regulations while serving Chinese customers, which account for about 8% of the company’s revenue.
He also said TSMC sees opportunities in physical AI and is investing in specialty technologies, including through its image sensor joint venture with Sony, to support customers’ long-term growth.
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