HONG KONG (AP) 鈥� Major Taiwan computer chipmaker TSMC said Thursday it plans to spend another $100 billion on expanding its manufacturing capacity in the United States.
The latest commitment appears to bring the company鈥檚 total pledges for investment in U.S. chipmaking to $265 billion. It also raised its annual revenue forecast after booking record high profits thanks to runaway demand from the boom in artificial intelligence.
The world’s largest contract chip manufacturing and one of the world鈥檚 most valuable companies, TSMC鈥檚 results are seen as a barometer for the global chip industry and for AI at a time when worries about a potential AI bubble have been buffeting financial markets.
As demand continues to surge, it has been expanding chip fabrication plants in the U.S., and Taiwan. It said it is increasing its annual capital expenditure budget for this year to $60 billion-$64 billion, up from an earlier estimate of $52 billion-$56 billion.
TSMC, or Taiwan Semiconductor Manufacturing Co., is a key supplier to Nvidia and Apple. It had previously already committed $165 billion in the U.S. for building plants in Arizona, with six fabrication facilities planned.
The extra $100 billion in investments are to 鈥渟upport the strong multiyear demand from our leading U.S. customers,鈥� C.C. Wei, chairman and CEO of TSMC, said during the company’s quarterly earnings conference Thursday.
鈥淲e believe this investment will help to further foster the development of the U.S. semiconductor ecosystem, strengthen the supply chain and support an increasing number of high-tech, high-paying jobs in the United States,鈥� he said.
AI-related demand globally continues to be 鈥渆xtremely robust,鈥� Wei added, as the 鈥淎I megatrend continues to drive the need for more and more computation.鈥�
TSMC on Thursday reported a record 706.6 billion new Taiwan dollars ($22 billion) in net profit for the April-June quarter, up 77% from a year earlier, better than what analysts had expected.
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