The Chief Financial Officer of Taiwan Semiconductor stated that the company is accelerating the construction of its factory in Arizona to seize the development opportunity of artificial intelligence, a "super trend."

TSMC's Chief Financial Officer Huang Renzhao stated in an interview that clients continue to show a "super demand wave lasting for years," and TSMC is racing against time to enhance the capacity of its Arizona factory.

The artificial intelligence industry is currently experiencing a sustained structural demand explosion, prompting TSMC to double down on its U.S. chip manufacturing layout with an additional investment of $100 billion, significantly expanding its investment scale in Arizona.

With this new investment, TSMC's total planned investment in Arizona rises to $265 billion. This large-scale expansion plan driven by AI demand has also led the company to raise its full-year capital expenditure expectations, setting the range at $60 billion to $64 billion.

Huang Renzhao stated that this additional investment is based on the strong customer orders in the U.S. market and the strong support from the U.S. government.

"We are facing sustained, long-term strong industry demand, and we have no intention of giving up market share to other competitors," Huang said. "As long as the long-term development trend of artificial intelligence remains unchanged, we can continue to create profit growth for our shareholders."

Huang Renzhao mentioned that to meet the surging customer demand, TSMC is fully optimizing its advanced process capacity, including rapidly upgrading the 5-nanometer production line to the more advanced 3-nanometer process to meet customer needs.

The nanometer value represents the size of a single transistor on a chip. The smaller the transistor size, the more transistors can be integrated on a single chip. Generally speaking, the smaller the process nanometer value, the stronger the chip performance and the higher the energy efficiency.

Regarding the progress of TSMC's U.S. factory construction, the CFO revealed that the first-phase factory using 4-nanometer technology has officially begun production operations.

"In the coming quarters, the capacity of this factory will continue to expand," Huang Renzhao stated, adding that the 2-nanometer process has already contributed to revenue in the second quarter of this year and will become a new growth engine for the company in the third quarter.

Huang Renzhao also admitted that the construction cost of wafer fabs in the U.S. is 4 to 5 times that of Taiwan. Although the short-term profit dilution effect will be exacerbated as overseas production scales up, this overseas expansion will ultimately further promote the improvement of the U.S. semiconductor industry chain ecosystem.

When discussing the allocation of the new $100 billion funding, Huang Renzhao stated, "This investment will cover both front-end wafer manufacturing plants and back-end advanced packaging plants."

On the day of the earnings report release, TSMC's stock price closed up more than 1%; however, the stock fell 7% last Friday, with a cumulative increase of about 48% this year.

Regarding the company's stock price performance, Huang Renzhao stated that TSMC cannot control the trends of the financial market. "What we can do is focus on solidifying the company's operational fundamentals." He added that despite the significant increase in costs of various components across the industry, TSMC's strategic focus on the high-end market has made its impact minimal.

This wafer foundry company is laying out various future growth tracks. When discussing the prospects of physical AI development, he mentioned that TSMC recently established a joint venture with Sony for image sensors, which is one of the strategic measures for the company to lay out specialized chip technology and help customers achieve long-term business growth