Taiwan Semiconductor Manufacturing Co. reported a record quarterly net profit of NT$706.6 billion ($22 billion) for the April-June period, a 77.4 percent surge from a year earlier, and simultaneously announced it would invest an additional $100 billion in advanced manufacturing facilities in Arizona. The profit figure far exceeded the NT$624-632 billion consensus among analysts, while the fresh US commitment brings the company’s total pledged investment there to $265 billion.

The results were propelled by insatiable global demand for chips that power artificial intelligence and high-performance computing. Advanced technologies—processes of 7 nanometres and below—accounted for 77 percent of wafer revenue, with the 3nm and 5nm nodes alone contributing 63 percent. Gross margin widened to 67.7 percent, reflecting high capacity utilisation and the pricing power TSMC commands as the world’s largest contract chipmaker. The newest 2nm process, which has entered mass production, already generated 3 percent of sales.

TSMC’s key customers—Apple, Nvidia and Broadcom—are driving the AI infrastructure buildout, and the Arizona expansion is designed to onshore production of 2nm logic chips and advanced packaging, a critical bottleneck in AI supply chains. Viewed from Washington, the investment aligns with strategic efforts to secure domestic semiconductor supply; analysts in Taipei note it also diversifies the company’s geographic footprint amid cross-strait tensions. The firm raised its annual capital expenditure forecast to $60-64 billion, up from an earlier estimate of $52-56 billion, signalling confidence that the AI investment cycle has further to run.

TSMC guided for third-quarter revenue of $44.6-45.8 billion and an operating margin of 56-58 percent, indicating the momentum will persist. The next factual milestone to watch is the pace of construction in Arizona and the ramp-up of 2nm output, which the company’s CFO described as a “sharp acceleration” that will support multi-year demand from its largest American clients.