TSMC to Accelerate US Chip Production Amid Strong Demand, CEO Says

Taiwan Semiconductor Manufacturing Company (TSMC) CEO C.C. Wei announced that the company is accelerating its US chip production due to strong demand from its US customers. TSMC plans to invest $165 billion in US semiconductor manufacturing and aims to speed up its volume production schedule by several quarters. The company reported record-high revenue and profit for Q2, beating estimates. Despite potential US tariffs, TSMC has not seen any changes in customer behavior yet.

Taiwan Semiconductor Manufacturing Company (TSMC) CEO C.C. Wei recently announced that the company is accelerating its US chip production schedule due to robust demand from its US customers. TSMC plans to invest $165 billion in US semiconductor manufacturing, aiming to expedite its volume production by several quarters [3].

In its second quarter (Q2) 2025 earnings report, TSMC delivered record-high revenue and profit, surpassing analyst estimates. The company reported a 38.6% year-over-year (YoY) increase in revenue to NT$933.79 billion (US$30.07 billion) and a gross margin of 58.6%. Despite aggressive capital expenditures, TSMC maintained strong profitability, with net income of NT$398.27 billion (US$12.93 billion) and a 42.7% net profit margin [3].

TSMC's advanced processor technologies, particularly those at 3nm, 5nm, and 7nm nodes, accounted for 74% of total wafer revenue. These technologies are in high demand for AI applications and high-performance computing (HPC), which contributed 60% and 14% of total revenue, respectively [1]. Despite potential US tariffs, TSMC has not observed any changes in customer behavior, indicating strong demand for its products [3].

To meet this demand, TSMC is expanding its US operations. The company has already invested $165 billion in three new fabrication plants, two advanced packaging facilities, and an R&D center in Arizona. This represents the largest foreign manufacturing investment in US history and aligns with the CHIPS and Science Act's incentives [3]. TSMC's U.S. expansion is not only about accessing subsidies but also about securing supply chain resilience in an era of US-China tech decoupling [3].

TSMC's strategic expansion in the US is part of a broader global diversification effort. The company's delayed second fab in Kumamoto, Japan, and its joint ventures in Germany with Bosch and Infineon, reflect a "hub-and-spoke" strategy, which aims to de-risk over-reliance on any single region [3].

Looking ahead, TSMC expects its third-quarter net revenue to be $31.8 billion to $33 billion, with gross and operating margins at 55.5%-57.5% and 45.5%-47.5%, respectively [1]. The company's ability to maintain profitability while investing heavily in expansion underscores its long-term vision and strategic resilience.

References:
[1] https://newsable.asianetnews.com/markets/tsmc-stock-eyes-fresh-record-as-chip-foundry-s-q2-results-guidance-exceed-estimates-on-ai-demand-surge-articleshow-86goke6
[2] https://wccftech.com/tsmcs-arizona-factory-for-latest-2nm-tech-could-start-production-in-2027-implies-report/
[3] https://www.ainvest.com/news/tsmc-2025-earnings-strategic-expansion-assessing-margin-resilience-global-manufacturing-keys-sustained-competitive-advantage-2507/