Taiwan Semiconductor Manufacturing or TSMC (TPE:2330) is accelerating its Arizona investment to $165 billion, planning 12 wafer and packaging fabs, DigiTimes reported Thursday.

Capital expenditure for 2026 is projected at $52 billion to $56 billion due to advanced N2 process costs and broader global expansion. Taiwanese suppliers are mobilizing quickly, increasing visas and local staffing to support TSMC's projects, reportedly.

The surge is driven by US policy incentives, anticipated chip demand, and TSMC's plan for more than 10 factories. While US factory costs are two to three times higher than in Taiwan, suppliers are investing heavily to secure long-term orders. Early movers are offering higher salaries to attract talent, preparing for future growth despite near-term thin margins, the news outlet said.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)