Taiwan Semiconductor Manufacturing is planning to invest an additional $100 billion in the U.S. as the chip manufacturer reported another surge in earnings and revenue. The stock was falling early Thursday.
It reported a net profit of 706.56 billion New Taiwan dollars ($21.94 billion) for the second quarter, up 77% from the same period a year earlier.
Analysts had forecast a net profit of NT$626.82 billion, according to a FactSet poll.
According to its monthly revenue figures, TSMC logged revenue of NT$1.27 trillion for the second quarter, up 36% from the same period last year. The company has previously estimated 2026 revenue growth at more than 30%.
In U.S. dollar terms, TSMC's second-quarter revenue came to $40.20 billion, up 34% from the same period a year earlier. Writing ahead of the earnings report, analysts at Jefferies predicted TSMC could lift its full-year revenue growth outlook into the 30%-35% range.
TSMC is the main supplier of chips to Nvidia, the leader in semiconductors used for AI applications. TSMC also makes the core processors inside Apple iPhones, Qualcomm mobile chipsets, and processors made by Advanced Micro Devices.
The company is racing to keep up with demand and on Thursday said it will spend an additional $100 billion building semiconductor fabrication plants in Arizona, taking its total U.S. investment to $265 billion.
TSMC had previously pledged a total of $165 billion in American investment, including building three new chip plants.
Shareholders might be concerned about such heavy spending and looking for reassurance that the U.S.-made chips can eventually be produced at the same margins as those manufactured in Taiwan.
American depositary receipts of TSMC were down 4.2% in Thursday's premarket.
TSMC is looking to fend off a challenge from Intel, which has received U.S. government backing. Intel currently pays TSMC to make an estimated 30% of its wafers as it builds its own manufacturing capacity and invests in new products. But Intel -- which was a recent Barron's stock pick -- is hoping to attract major customers to its own manufacturing services.