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TSMC Plans Extra $100B in U.S. Investment After Earnings Beat. The Stock Is Falling.
By Adam Clark
Updated July 16, 2026, 4:39 am EDT / Original July 15, 2026, 2:00 pm EDT
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Taiwan Semiconductor Manufacturing plans to invest an additional $100 billion in the U.S., raising its total U.S. investment to $265 billion.
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The chip manufacturer reported a second-quarter net profit of NT$706.56 billion, beating analyst forecasts of NT$626.82 billion.
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TSMC’s American depositary receipts fell in premarket trading on Thursday following the announcement.
Taiwan Semiconductor Manufacturing
TSM\ \ -0.22% is planning to invest an additional $100 billion in the U.S. as the chip manufacturer reported another surge in earnings and revenue. The stock was falling early Thursday.
It reported a net profit of 706.56 billion New Taiwan dollars ($21.94 billion) for the second quarter, up 77% from the same period a year earlier.
Analysts had forecast a net profit of NT$626.82 billion, according to a FactSet poll.
According to its monthly revenue figures, TSMC
2330\ \ +1.23% logged revenue of NT$1.27 trillion for the second quarter, up 36% from the same period last year. The company has previously estimated 2026 revenue growth at more than 30%.
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In U.S. dollar terms, TSMC’s second-quarter revenue came to $40.20 billion, up 34% from the same period a year earlier. Writing ahead of the earnings report, analysts at Jefferies predicted TSMC could lift its full-year revenue growth outlook into the 30%-35% range.
TSMC is the main supplier of chips to Nvidia
NVDA\ \ +0.33%, the leader in semiconductors used for AI applications. TSMC also makes the core processors inside Apple iPhones, Qualcomm QCOM\ \ -0.07% mobile chipsets, and processors made by Advanced Micro Devices AMD\ \ -3.46%.
The company is racing to keep up with demand and on Thursday said it will spend an additional $100 billion building semiconductor fabrication plants in Arizona, taking its total U.S. investment to $265 billion.
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TSMC had previously pledged a total of $165 billion in American investment, including building three new chip plants.
Shareholders might be concerned about such heavy spending and looking for reassurance that the U.S.-made chips can eventually be produced at the same margins as those manufactured in Taiwan.
American depositary receipts of TSMC were down 4.2% in Thursday’s premarket.
TSMC is looking to fend off a challenge from Intel, which has received U.S. government backing. Intel currently pays TSMC to make an estimated 30% of its wafers as it builds its own manufacturing capacity and invests in new products. But Intel—which was a recent Barron’s stock pick —is hoping to attract major customers to its own manufacturing services.
Write to Adam Clark at adam.clark@barrons.comExternal link
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