TSMC CEO: To build a "mega fab cluster" in the United States, the original land is not enough, so another 900 acres have been purchased.

TSMC is rapidly accelerating its expansion plans in the United States. According to a report from CNBC16, TSMC has already invested $165 billion in the U.S., but CEO C.C. Wei stated that the company recently purchased additional land in Arizona and plans to build a "super-large wafer fab cluster." This expansion aligns with the company's record-breaking capital expenditure plans and highlights its strong confidence in the growing demand for AI chips. TSMC previously announced its 2026 capital expenditure plan could reach as high as $56 billion, a 37% increase from the actual $40.9 billion spent in 2025, setting a new historical high. The company expects revenue growth in 2026 to approach 30%, surpassing analysts’ average forecasts. TSMC CFO Wendell Huang told CNBC that the company will continue to increase investment in Arizona. “We have strong confidence in the AI megatrend, which is why we’re ramping up capital expenditure and expanding both in Taiwan and the U.S.,” he said. “Not only are we expanding, but we’re also accelerating as much as possible to meet demand or close the gap.” Insufficient original land, new purchase of 900 acres to support expansion According to Huang, TSMC originally purchased 1,100 acres in Arizona to build six wafer fabs, two advanced packaging facilities, and one R&D center. But as expansion plans scaled up, this land was no longer sufficient, prompting the company to buy an additional 900 acres. Some facilities originally planned for the first plot will be relocated to the newly acquired land, while the rest will be “used for future flexibility.” This land expansion provides the physical basis for TSMC to build its "super-large wafer fab cluster" in the U.S. While the company did not disclose specific investment figures for the U.S. expansion, it’s expected that 2026 capital spending will increase by more than 30% compared to 2025. This scale of investment reflects TSMC’s judgment regarding the sustainability of AI chip demand. Progress of U.S. fabs exceeding expectations TSMC's first plant in the U.S. has begun mass production and is progressing better than expected. Huang said the yield and technology level of the plant are now comparable to leading facilities in Taiwan. "This proves our manufacturing excellence can be duplicated in the U.S., which is very meaningful for both ourselves and our clients," he said. The company has moved up the production schedule for its second Arizona plant to the second half of 2027, with accelerated construction of the third plant starting this year. TSMC also said it has begun applying for permits for its fourth plant. However, Huang noted that the company's most advanced technologies will continue to be developed and scaled up in Taiwan, as TSMC is able to achieve necessary collaboration between R&D teams and manufacturing operations there. Notably, TSMC's first-quarter guidance also beat market expectations. The company expects revenue this quarter to reach $34.6 billion to $35.8 billion, above Bloomberg’s consensus estimate of $33.22 billion. Gross margin and operating margin guidance are 63%-65% and 54%-56%, significantly higher than market estimates of 59.6% and 49.7%. Management said capacity is very tight, and capital expenditure will increase significantly in the next three years. Risk Warning and Disclaimer The market involves risk. Investment requires caution. This article does not constitute personal investment advice and does not take into account individual users’ specific investment goals, financial situation, or needs. Users should consider whether any opinions, views, or conclusions in this article fit their particular circumstances. All investments made based on this article are at your own risk.