TSMC CEO: Plans to build a "super-sized wafer fab cluster" in the U.S., will purchase an additional 900 acres if existing land is insufficient

Taiwan Semiconductor Manufacturing Company (TSMC) is significantly accelerating its expansion plans in the United States.

According to a report by CNBC on the 16th, TSMC has invested $165 billion in the U.S., but CEO C.C. Wei stated that the company recently purchased additional land in Arizona, planning to create a "super-sized wafer fabrication cluster." This expansion is in sync with the company's record capital expenditure plan, highlighting its strong confidence in the continued growth of AI chip demand.

TSMC previously announced that its capital expenditure plan for 2026 could reach up to $56 billion, a substantial increase of 37% compared to the actual expenditure of $40.9 billion in 2025, setting a historical high. The company expects revenue growth in 2026 to approach 30%, exceeding analysts' average expectations.

TSMC's Chief Financial Officer Wendell Huang stated in an interview with CNBC that the company will continue to increase its investment in Arizona. "We have strong confidence in the AI mega trend, which is why we are increasing capital expenditures and expanding in Taiwan and the United States," he said, "not only to expand but to accelerate as much as possible to meet demand or close the gap."

Original Land Insufficient, New Purchase of 900 Acres to Address Expansion

According to Huang, TSMC initially planned to build six fabs, two advanced packaging facilities, and a research center on the 1,100 acres of land it purchased in Arizona. However, as the expansion plan was upgraded, this land became insufficient, prompting the company to purchase an additional 900 acres.

Some facilities originally planned for the first parcel of land will be relocated to the newly acquired land, while the remainder will be "used for future flexibility." This land expansion provides the physical foundation for TSMC to create a "super-sized wafer fabrication cluster" in the U.S.

Although the company did not disclose the specific amount for its U.S. expansion plan, it is expected that the midpoint of the 2026 capital expenditure will grow by over 30% compared to 2025. This investment scale reflects TSMC's judgment on the sustainability of AI chip demand.

Progress of U.S. Factory Exceeds Expectations

TSMC's first factory in the U.S. has begun mass production, and progress has exceeded expectations. Huang stated that the current yield and technology level of the factory are comparable to leading facilities in Taiwan. "This proves that our manufacturing excellence can be replicated in the U.S., which is very meaningful for us and our customers," he said.

The company has advanced the production timeline for its second Arizona factory to the second half of 2027, and construction of the third factory will accelerate this year. TSMC also stated that it has begun applying for permits for the fourth factory.

However, Huang pointed out that the company's most advanced technologies will continue to be developed and scaled in Taiwan, as TSMC can achieve the necessary collaboration between R&D teams and manufacturing operations there.

It is worth mentioning that TSMC's first-quarter earnings guidance also exceeded market expectations. The company expects revenue for the quarter to reach $34.6 billion to $35.8 billion, higher than Bloomberg's consensus estimate of $33.22 billion. The gross margin and operating profit margin guidance are 63%-65% and 54%-56%, respectively, far exceeding market estimates of 59.6% and 49.7% Management stated that production capacity is very tight, and capital expenditures will significantly increase over the next three years.

Risk Warning and Disclaimer

The market has risks, and investment should be cautious. This article does not constitute personal investment advice and does not take into account the specific investment goals, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article align with their specific circumstances. Investment based on this is at one's own risk.