TSMC to Invest Over $200 Billion in Capital Expenditure Over Next Three Years, Facility Engineering Firms to Benefit First

TSMC (2330-TW)(TSM-US) has significantly increased its capital expenditure projection for this year to between $60 billion and $64 billion. Industry analysts believe that over the next three years, TSMC will aggressively expand production capacity in Taiwan and the United States, with total capital expenditure potentially reaching $210 to $220 billion—nearly double the approximately $100 billion spent over the past three years. As facility engineering firms are the frontline suppliers in semiconductor fab construction, companies including Han Tang (2404-TW), Sante *(5536-TW), Yashine (6139-TW), Fan Hsuan (6196-TW), and Yankee Engineering (6691-TW) are expected to benefit first.

TSMC initially projected its capital expenditure for this year to be between $52 billion and $56 billion. However, with the rise of Agentic AI, customer demand has surged, prompting TSMC to raise its capex forecast by over $10 billion at the upper end, setting a new historical high. This move is widely seen as a strong signal of sustained AI demand growth in the coming years.

TSMC’s capital expenditure over the past three years totaled approximately $100 billion. This year alone, it is expected to reach $60–64 billion. Foreign investment firms project that TSMC’s capex will continue to grow in 2027 and 2028, reaching $78 billion and $82 billion respectively, representing annual growth rates of about 25% and 5%.

Supply chain players anticipate that with U.S. government support, TSMC has already secured land resources and two complete plots in Arizona. As customer demand increases, the pace of fab construction is expected to accelerate. Facility engineering firms now have order visibility extending several years into the future. With visibility into at least 12 fabs, even companies previously cautious about entering the U.S. market are expected to adopt a more open stance, aggressively expanding into the U.S. to capture construction opportunities.

Han Tang is a key facility engineering partner for TSMC’s Arizona fabs. It was involved early in cleanroom and MEP (mechanical, electrical, plumbing) systems for Arizona Fab 1. For Fab 2, it has further secured contracts for water, gas, and chemical systems. The company also has experience hiring local personnel in the U.S., gradually building a localized construction team.

Fan Hsuan is another early engineering contractor that followed TSMC to the U.S. As TSMC’s Arizona fab demand expands, Fan Hsuan is not only competing for facility engineering contracts but also leveraging its capabilities in automation, equipment integration, and supply chain services, positioning itself for sustained growth alongside its client’s expansion.

The Sante Group, together with its subsidiaries, has formed a joint task force. Its gas engineering subsidiary, Rui Ze (7703-TW), has already established a presence in Phoenix, Arizona, positioning itself close to TSMC and other clients. The group as a whole is expected to further expand its Arizona footprint, leveraging shared resources to reduce U.S. entry costs.

Yankee Engineering has also established a subsidiary in Phoenix, Arizona. Initially focused on securing licenses, recruiting personnel, and localizing its supply chain, the company aims to win engineering contracts for TSMC’s subsequent Arizona fabs and surrounding supply chain facilities, driving overseas revenue growth.