Taiwan Semiconductor Manufacturing (TSM) reported second-quarter earnings Thursday. And while the market seemed to shrug off a very solid earnings report, the company announced its plan to invest another $100 billion in its foundries in Arizona.
The declaration, made during the company's earnings call with analysts, brings TSMC's total investment in Arizona to $265 billion in up to 12 separate facilities.
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CEO C.C. Wei told analysts that the investment would support advanced packaging fabs and the manufacturing of 2-nanometer chips, which TSMC just began selling in the second quarter.
"We believe this investment will help to further foster the development of the United States semiconductor ecosystem, strengthen the supply chain, and support an increasing number of high-tech, high-paying jobs in the United States," he said. "At the same time, we are building 13 leading-edge and advanced packaging fab in Taiwan over the next several years, and we will continue to further invest in Taiwan. Therefore, TSMC's semiconductor technology and manufacturing will continue to play a pivotal role in supporting the global semiconductor industry while unleashing our customers' innovations."
Let's take a closer look at TSMC and explore bullish reasonings about the company for 2026 and beyond.
TSMC, as the company is known, is the world's largest foundry, with the biggest part of its business geared toward making high-powered artificial intelligence chips for Nvidia Corporation (NVDA), Advanced Micro Devices (AMD), Broadcom (AVGO), and other chipmakers. TSMC has a market cap of $2.18 trillion, making it the seventh-largest company in the world by market cap.
Revenue in the second quarter was $40.2 billion, up 33.7% from a year ago and up 12% on a sequential basis. Net income was $22.36 billion, up a whopping 77.8% from a year ago.
And TSMC expects revenue growth to accelerate through the end of the year. The company called for third-quarter revenue to be in the range of $44.6 billion and $45.8 billion, which would be up 36% from a year ago. And full-year revenue is expected to grow by 40%, management said.
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