Taiwan Semiconductor Manufacturing Co. signaled durable, multi-year demand for the advanced chips powering artificial intelligence and accelerated its investment in U.S. manufacturing, underscoring how central the company has become to the AI supply chain.

The world's largest contract chipmaker said AI-related orders remain robust well beyond the current year, with leading-edge capacity effectively sold out as cloud providers and hardware giants race to build out data centers.

TSMC's most advanced nodes are the primary source for the processors used by Nvidia, Apple and major cloud providers, giving the company unusual pricing power at a moment when much of the semiconductor industry is contending with softer demand.

The company detailed fresh spending on its Arizona fabs, where it is working to replicate Taiwanese production capability on U.S. soil under sustained pressure from Washington to localize critical manufacturing.

The upbeat outlook arrives as the broader chip sector has wobbled in July, with many semiconductor stocks sliding on valuation concerns and a rotation away from AI-exposed names. TSMC's confidence highlights a widening split between a handful of suppliers with pricing power and the wider cohort.

Investors will watch whether the guidance steadies sentiment ahead of a heavy megacap earnings week, when results from the largest technology companies are expected to test the durability of the AI trade.

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