TSMC Raises Capex for Arizona Expansion as AI Demand Lifts Growth
TSMC is increasing capital expenditures to expand production capacity and support customer growth, including an additional $100 billion investment in Arizona that brings total state investment to $265 billion. It is also building advanced packaging and leading-edge fabs across Taiwan, and adding mature node capacity in Japan and Germany. Management expects initial gross-margin dilution of 2%–3%, rising from later stages, with revenue growth projected slightly above 40% in 2026.