TSMC Races to Meet Soaring Chip Demand as Profits Surge

Taiwan Semiconductor Manufacturing Company (TSMC) says that it's looking to speed up its chip production volumes, as it sees a surge in demand from the U.S., as well as from the rapid growth of artificial intelligence technologies.

According to CNBC, TSMC CEO C.C. Wei said on July 17 earnings call that the chipmaker is seeing "strong demand" from its leading customers in the U.S., where TSMC is building six advanced wafer fabrication facilities, two advanced packaging fabrication facilities, and a research and development center. Wei shared that a fabrication facility in Arizona has already been completed, a second has been built, and construction is underway at a third. 

TSMC reported a 61% year-over-year increase for its profits in the second quarter of 2025, and is projecting a 38% year-over-year revenue increase in Q3. Wei expects TSMC's full-year revenue for 2025 to rise by 30% from the previous year as well.

Despite threats from the Trump administration to impose heavy tariffs against imported semiconductors, Wei reported that TSMC has "not seen any change in our customers' behavior at all."

"However, we understand there are uncertainties and risks from the potential impact of tariff policies," he added.

Several other companies have made commitments to expanding chip production in the U.S. in recent months. In June, Texas Instruments vowed to invest more than $60 billion in building or expanding seven chipmaking facilities at three sites in Texas and Utah. Nvidia also announced plans in March to pour hundreds of billions of dollars into its U.S. semiconductor and electronics supply chain over the next four years.