TSMC CFO: "We Will Continue to Invest Amid Multi-Year Structural Demand"

Taiwan's TSMC has officially confirmed that it will increase its investment in its Arizona, U.S. facility to $265 billion (approximately 397.5 trillion won), reaffirming "strong and multi-year" demand for artificial intelligence (AI) semiconductors.
Wendell Huang, Chief Financial Officer (CFO) of TSMC, stated that the additional $100 billion (approximately 150 trillion won) investment is a measure to address robust demand from U.S. clients and to keep competitors such as Intel in check.
In an interview with Bloomberg and Reuters on July 20, CFO Huang said, "We continue to see strong, multi-year structural demand from our customers," adding that he is "very satisfied" with the progress of the Arizona operations.
As a company known as a barometer for global semiconductor demand due to its aggressive capital expenditure and surging profit margins, TSMC's reaffirmation of this long-term demand outlook is significant.
"We are doing everything we can, everywhere we can, to support our customers' growth," Huang said. "We want to show that we have no intention of leaving any food on the table for anyone else."
He added that this amount represents the largest foreign direct investment (FDI) in U.S. history.
Previously, TSMC Chairman C.C. Wei stated during the second-quarter earnings conference call on July 16 that the additional $100 billion would lead to the construction of four new factories.
Once completed, TSMC's Arizona hub will ultimately feature 10 semiconductor fabrication plants, two packaging facilities, and one research and development (R&D) center.
The first factory in the Arizona complex is already in operation and is producing yields equivalent to those of the company's main plants in Taiwan.
The second factory is set to begin equipment installation soon, the third is under construction, and preliminary work has begun for the fourth factory and the first advanced packaging facility.
In an interview with CNBC, CFO Huang revealed that the first phase, the 4-nanometer process, is already operational, and that the 2-nanometer process will be the next growth engine.
He explained that "the 2-nanometer process will grow more and more over the coming quarters," noting that after generating its first revenue in the second quarter, it will become a new pillar of revenue starting in the third quarter.
CFO Huang explained that the new $100 billion investment will be used for "both front-end (wafer foundry) and back-end (advanced packaging) facilities."
TSMC's expansion of its U.S. investment was also influenced by geopolitical concerns from the U.S. government regarding the concentration of advanced semiconductor production in Taiwan, which is located in a seismically active region and is claimed by China.
This investment expansion is being received as an achievement for President Donald Trump, who has sought to bring semiconductor production back to the United States.
President Trump has previously criticized Taiwan for "stealing" the U.S. semiconductor business and has stated that by the end of his term, the U.S. would possess 50% of the world's semiconductor production capacity.
Market reactions have been mixed.
Following the earnings announcement, GF Securities of China downgraded its investment rating, stating, "The fact that TSMC's acceleration of capital expenditure began only in 2025, 18 months to two years after the AI cycle began in earnest, suggests a loss of market share or a shift in demand to competitors," which was followed by a global sell-off in tech stocks.
TSMC's Taiwan-listed shares fell 7.3% on July 17, despite the company reporting record-high earnings.
However, the stock still maintains a gain of nearly 50% for this year.
CFO Huang reaffirmed the company's existing stance that even with expanded operations in the U.S., the latest technologies will be mass-produced in Taiwan first.
He explained that next-generation semiconductors require close collaboration between R&D organizations and factories, which must take place in Taiwan, and that overseas relocation can only be considered after the technology has stabilized.
TSMC also plans to build 13 additional advanced factories in Taiwan over the coming years.
(Photo: AP, Yonhap News)
※ Please note: This article was translated by AI and may contain errors.