TSMC’s Arizona Expansion Gains Momentum Amid Record Retail Investor Interest

Taiwan Semiconductor Manufacturing Company (TSMC) is demonstrating robust operational and financial momentum, underscored by two key developments. The chipmaker’s ambitious U.S. expansion is progressing ahead of schedule, while its shareholder base in Taiwan has swelled to a historic high, reflecting strong market confidence.

Accelerated Timeline for U.S. Manufacturing

Construction at TSMC’s Fab 21 complex in Arizona is advancing more rapidly than initially projected. According to reports from the Commercial Times, the facility’s second plant (P2) is now slated to commence high-volume production using its 3-nanometer process technology in the second half of 2027. This timeline represents a notable acceleration from the original target of 2028.

Significantly, all four planned fabrication plants at the Arizona site are now reported to be fully reserved by customers. This includes the fourth facility, which is designed for the production of Angstrom-class nodes. Major technology firms, including Apple, Nvidia, AMD, and Qualcomm, are securing this capacity. Their commitments are seen as a strategic move to mitigate geopolitical supply chain risks, with TSMC’s U.S. presence offering these American clients greater planning certainty.

The pace of construction itself has improved markedly. The time required to build new facilities in the U.S. has been reduced from approximately three years for the first factory to a current range of 1.5 to 2 years—a rate that now approaches construction speeds in Taiwan. In parallel, the company has scheduled the installation of equipment for sub-2-nanometer nodes at its Hsinchu and Kaohsiung sites in Taiwan to begin in the third quarter of 2026.

Should investors sell immediately? Or is it worth buying TSMC?

Shareholder Base Hits New Peak

Despite a minor share price decline last week, TSMC’s investor registry in Taiwan reached a new record of 2.46 million individuals. This figure represents an increase of approximately 75,500 shareholders within a single week. Analysts attributed the brief price volatility to broader swings in global technology stocks, triggered by rising oil prices amid ongoing geopolitical tensions.

The growth in shareholder numbers was driven almost exclusively by retail investors utilizing odd-lot trading, a mechanism that allows the purchase of fewer than 1,000 shares. The count of odd-lot shareholders alone surged by roughly 65,800 to reach about 1.96 million. In contrast, major shareholders holding at least one million shares slightly reduced their positions; their number decreased by five to 1,513.

Artificial Intelligence Fuels Financial Outlook

Sustained demand for artificial intelligence (AI) hardware forms the core of TSMC’s bullish growth projections. For the first quarter of 2026, the company forecasts revenue in the range of $34.6 billion to $35.8 billion, which would constitute a year-over-year increase of approximately 38%. It expects its gross margin for that period to land between 63% and 65%.

Looking further ahead, TSMC anticipates its AI accelerator business will achieve a compound annual growth rate in the mid-to-high 50 percent range through 2029. Market confidence was further evidenced by the stock’s rapid recovery following its ex-dividend adjustment this Tuesday. The shares returned to their pre-dividend level at market open—marking the 21st such occurrence since the quarterly dividend was instituted in 2019—highlighting persistent demand for the equity.