Taipei [Taiwan], July 16 (ANI): Taiwan Semiconductor Manufacturing Company (TSMC) will invest an additional USD 100 billion in Arizona as it plans to expand capacity to deliver advanced chips to the AI industry, Focus Taiwan reported.

The announcement was made by its chairman C.C. Wei on Thursday as the company announced blockbuster second quarter earnings with net profit zooming more than 77 per cent.

The company has also raised its sales forecast for 2026 to more than 40 per cent, making it the second increase this year on the back of surging AI demand. The optimism in the sales forecast comes at a time when the AI industry has committed massive investments to ramp up capacity to meet the surging demand.

With the announcement of an additional USD 100 billion, TSMC's total investment in its Arizona facility has reached USD 265 billion. The investments are expected to have four additional wafer fabs as well as advanced packaging facilities, the report quoted Wei as saying.

The company will proceed with the new investments 'as fast as possible' in order to narrow the gap between demand and supply, the report added.

The company's robust second-quarter earnings were driven by strong demand for its leading-edge process technologies. The shipments of 2-nanometer accounted for 3% of total wafer revenue; 3-nanometer accounted for 30%; 5-nanometer accounted for 33%; and 7-nanometer accounted for 11%, the company said.

'Moving into third quarter 2026, we expect our business to be supported by continued strong demand for our leading-edge process technologies, including the steep ramp-up of our 2-nanometer technology,' TSMC CFO Wendell Huang said.

The company's stellar performance comes amid rising volatility in AI stocks as investors weigh the sustainability of the massive AI investments and whether they will be able to turn them into cash flows. TSMC tends to benefit from the rising demand for semiconductors as it is the world's largest foundry serving some of the marquee names like Nvidia and Apple, among others. (ANI)