Wendell Huang, chief financial officer of Taiwan Semiconductor Manufacturing Company (TSMC), during a press conference in Taipei, Taiwan, Thursday, July 16, 2026.
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TSMC is looking to increase capacity at its Arizona plant as the company continues to see a “multi-year mega demand trend” from its customers, Chief Financial Officer Wendell Huang told CNBC.
TSMC or Taiwan Semiconductor Manufacturing Company., is ramping up its mega-investment in Arizona, committing an additional $100 billion to aggressively expand its U.S. chip manufacturing footprint amid rising multi-year structural demand for AI.
The new commitment brings TSMC’s total investment in Arizona to $265 billion, highlighting a massive ramp-up of AI-powered capabilities that also contributed to an upward revision of the company’s full-year capital expenditures to $60 billion to $64 billion.
Speaking in an exclusive interview with CNBC’s Emily Tan, TSMC’s Huang said the new investment is driven by robust consumer demand in the US market and strong government support.
“We’re seeing this steady, multi-year demand, and we don’t plan on leaving food on the table for anyone else,” Huang told CNBC. “As long as the megatrend is true, we can continue to deliver profitable growth for our shareholders,” he said.
Growing demand
To meet growing customer demand, TSMC is actively optimizing its advanced capabilities, including quickly converting the 5nm node to an advanced 3nm node to support customers, Huang said.
The number of nanometers refers to the size of each individual transistor on the chip. The smaller the transistor, the more of them can be packed into one semiconductor. Typically, reducing the nanometer size allows for more powerful and efficient chips.
When it comes to TSMC’s expansion in the US, the first phase using 4nm technology is already underway, the CFO told CNBC.
“It will get bigger and bigger over the next few quarters,” Huang said, citing 2nm technology as the company’s newest source of revenue in the third quarter after initially generating revenue in the second quarter.
Costs to build factories in the U.S. are four to five times higher than in Taiwan, but Huang said while the initial dilution will increase as the scale of overseas operations grows, the expansion will ultimately help further develop the U.S. semiconductor ecosystem.
“These will be both front-end wafer fabs and back-end fabs for advanced packaging materials,” Huang said of the $100 billion in new investment being deployed.
TSMC shares ended the day up more than 1% after posting earnings, but shares fell 7% on Friday. The stock is up about 48% year to date.
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TSMC shares since the beginning of the year.
Responding to the company’s stock price performance, Huang said TSMC does not have any control over financial markets. “What we can do is focus on the fundamentals of our business,” he said, adding that while the sector is facing significant component price increases, the company sees minimal impact due to its strategic focus on the high-end market.
In addition to market factors, TSMC also monitors its regulatory influence. Regarding China, Huang said TSMC continues to comply with all export control regulations while serving its Chinese customers, who account for about 8% of total revenue.
The chipmaker is paying special attention to future expansion drivers. On the outlook for physical AI, he added that the company’s recent joint venture with Sony to produce image sensors is part of its strategic commitment to supporting long-term customer growth in specialty technologies.
— CNBC’s Arjun Harpal contributed to this story.
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