AI infrastructure boom drives a surge in “going global”: TSMC bets $265 billions on the US, leading Taiwanese companies in overseas expansion
TSMC (TSM.US), along with several other Taiwanese companies, is significantly increasing its overseas investments to optimize supply chain layout and capitalize on the surge in demand for AI infrastructure.
According to reports from Zhitong Finance APP, TSMC (TSM.US), along with several other Taiwanese companies, is significantly increasing overseas investments to optimize supply chain layouts and capitalize on the surge in AI infrastructure.
TSMC is currently far ahead of all other Taiwanese manufacturers. In July, the company announced an additional $100 billion in capital expenditure, bringing its planned US investment total to $265 billion and intending to build four new advanced semiconductor wafer plants. This will increase its number of facilities in the US to 12.
Meanwhile, Quanta Computer (QUCCF) recently received approval to invest $973 million in Tennessee for supporting the assembly of servers and peripheral equipment. Last month, Wistron (WICOF) was approved to spend $150 million to set up a US subsidiary for assembling circuit boards. The company also plans to invest another $146 million to upgrade its Texas factory.
The latest report from the Market Intelligence & Consulting Institute forecasts that by 2030, the US will account for 40% of the AI server production capacity of Taiwanese companies, compared to an estimated 23% this year. At the same time, Taiwan's own share will drop from 47% to 30%.
In addition, Taiwanese companies are also expanding capacity in Southeast Asia. This includes Auras Technology's $245 million investment in a new factory in Vietnam, as well as Taiwan Union Technology's $231.8 million investment to expand its Thailand subsidiary.
This $100 billion bet marks TSMC’s third major increase in US investment. The original Arizona project announced in 2020 involved only $12 billion; then, in March 2025, surging AI chip demand saw the company add another $100 billion, bringing the total to $165 billion—and now, another $100 billion has been committed. Over five years, the investment scale has ballooned more than twentyfold.
The fundamental driver of this round of expansion is the demand for AI computing power. TSMC Chairman C.C. Wei clearly stated during a corporate briefing that the additional investment is aimed at meeting “the strong long-term demand from major US customers.” The company’s Q2 financial reports support this view: net profit surged 77.4% year-on-year to approximately $21.9 billion, with revenue hitting a record high of $40.2 billion.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Spot silver drops 2.03% intraday, trading at $60.08 per ounce.
Spot silver has dropped by 2.03% intraday to $60.08 per ounce; the main COMEX silver futures contract is now at $60.38 per ounce, down 1.97% intraday.
Bank of America strategists: Bonds become a strong alternative asset to U.S. stocks for the first time in decades
Savita Subramanian, Head of US Equity and Quantitative Strategy at Bank of America, stated that for the first time in decades, bonds have truly become a competitive alternative asset to the stock market. She also warned that investor sentiment is currently high, which means the stock market is more vulnerable to negative surprises and has relatively limited room for further upside surprises. Subramanian noted that the yield on the US 10-year Treasury bond has already surpassed 5%, while Bank of America's own valuation models indicate that the annualized return of the S&P 500 index over the next ten years may not reach this level. She pointed out that US policymakers are working to prevent long-term rates from rising too much. Both the Federal Reserve and the US Treasury Secretary are closely monitoring changes at the long end of the yield curve. Meanwhile, demographic shifts also mean that the ceiling for US interest rates may be lower than in the 1970s and 1980s. In addition, artificial intelligence may bring some deflationary effects in the future, which could ease long-term inflation and interest rate pressures. In this context, Subramanian believes that the environment for bond allocation is becoming more favorable, as it may be difficult for US Treasury yields to consistently rise above 6% to 7%.
European Central Bank Governing Council member Holloenz: Current interest rates retain ample flexibility
European Central Bank Governing Council member Dolenc stated that the ECB’s current monetary policy stance enables policymakers to respond to a variety of potential future shocks. Dolenc said on Wednesday that the current interest rate levels provide sufficient flexibility to deal with changing future circumstances. He added that the ECB’s future policy actions will still depend on inflation expectations and the development of related risks. In a speech in Ljubljana, Dolenc emphasized that geopolitical strategic risks and high energy prices remain significant sources of uncertainty, resulting in persistent inflationary pressures.
Barclays cuts Netflix target price to $70
Barclays has lowered Netflix (NFLX.US) target price from $80 to $70.
Crypto prices
More
