Shares of Taiwan Semiconductor Manufacturing Company (TSM), or TSMC, slipped after the chipmaker authorized an additional $20 billion in capital spending for TSMC Arizona, according to a filing with the U.S. Securities and Exchange Commission. TSMC Arizona is the company’s wholly owned subsidiary that is building a major semiconductor manufacturing site in Phoenix. The move adds to TSMC’s already massive U.S. investment, as the company previously approved $165 billion for the site. TSMC has described the project as the largest foreign direct investment in a greenfield project in U.S. history.
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Forget margin or options. Here's how the pros trade NVDAThe Arizona site is expected to include six semiconductor wafer fabs, two advanced packaging facilities, and a research-and-development center. Production is already underway, as the facility began volume production of Nvidia’s (NVDA) Blackwell GPUs in October 2025 using TSMC’s advanced N4P process. From here, the company plans to begin volume production on its N3 process in the second half of 2027.
Looking further out, TSMC expects its N2 and A16 process technologies to enter production by 2030. Separately, TSMC’s board also approved a capital budget of $31.28 billion on Tuesday. That money will go toward installing advanced technology capacity, building fabs, and adding fab facility systems. The goal is to support the rising demand for semiconductors that is tied to the artificial intelligence buildout.
Is TSM Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on TSM stock based on five Buys, one Hold, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average TSM price target of $465 per share implies 19.3% upside potential.
