According to the latest disclosure, the company plans to invest another $100 billion to expand the production capacity of chips in the United States. The funds will be used to advance the construction of new plants in Arizona, with a focus on 2 nanometers and below. In the case of semiconductor manufacturing in the United States, this means that home-grown expansion continues at a faster pace; in the case of the AI industrial chain, it reflects the continuing long-term demand of head customers.
Arizona or four more.
At the quarterly performance teleconference, the management stated that the additional investment would support the strong demand of major United States clients in the coming years. According to the company, as currently planned, this funding would probably lead to the construction of four additional crystal mills in Arizona.
Prior to that, the power builder had committed $16.5 billion to the United States for the construction of a plant in Arizona, which was planned to build six crystal-turner plants. If all new projects are landed, the build-up in the United States will be further expanded.
- Scale of new investments: $100 billion
- Original US commitment: $165.0 billion
- New plant direction: 2 nanometer and following
The demand for AI clients remains the cause of the increase.
Power generation is the world ' s largest round-generation enterprise and a key supplier for Nvidia, Apple and others. The Chairman and Chief Executive Officer of the company, Wei Cheol, stated that demand would remain strong from now until 2029 and 2030.
This statement also responds to the recent debate in the market over the overheating of AI. Capital expenditure and capacity planning for power generation, as important components of global advanced chip production, are often seen as important signals for observing the demand for AI chips.
It's a 2nd quarter of a year.
The same day, it was announced that the net profit from April to June would be 70.6 billion new yuan, or approximately $22 billion, an increase of 77 per cent over the same period, which was higher than market expectations. During the same period, the receipts amounted to N$ 127 trillion, or approximately US$ 39 billion, an increase of 36 per cent over the same period.
The company also increased its annual growth expectations. Management expects a slightly higher increase of 40 per cent in the collection rate in 2026 than the previous “over 30 per cent” guideline.
- Net profit in the second quarter: 70.6 billion $
- Second quarter collection: 1.27 trillion $
- 2026 battalion rate of increase expected: slightly above 40 per cent
United States investment and tariff arrangements provide the background
The report mentions that earlier this year, the Government of the United States President Trump and Taiwan entered into an arrangement whereby the United States reduced its tariffs on Taiwan ' s goods, while Taiwan pledged to invest about $250 billion in the United States ' science and technology sector, including semiconductor projects, in which it also spent on electricity.
Additional information:According to Counterpoint Research Analyst William Li, the PTIP is “critical” to sustain long-term growth and meet demand.