News Summary
Taiwan Semiconductor Manufacturing Co (TSMC) has achieved a significant milestone by reporting its first profit from its Arizona operations in the first half of 2025, generating net profits of approximately US$150.1 million. This turnaround comes after four years in Arizona and is attributed to robust market demand and high factory utilization. Despite contrasting performance in Japan, TSMC plans to expedite manufacturing expansion in Arizona, driven by a surge in demand for advanced chips, particularly for artificial intelligence applications.
Arizona has witnessed a significant financial milestone as Taiwan Semiconductor Manufacturing Co (TSMC), the largest contract chipmaker in the world, reported its first profit from its Arizona operations in the first half of this year. This profit comes after four years of operations within the state, marking a pivotal moment for TSMC’s expansion in the United States.
During the first half of 2025, TSMC’s subsidiary in Arizona generated NT$4.52 billion (equivalent to approximately US$150.1 million) in net profit. This figure stands in stark contrast to the loss of NT$4.34 billion reported during the same period the previous year, showcasing a remarkable turnaround attributed to robust market demand and high factory utilization.
Major clients supporting the success of TSMC’s Arizona facility include prominent technology companies such as Apple Inc, Nvidia Corp, and Advanced Micro Devices Inc. The first fabrication plant (fab) in Arizona began high-volume production in the last quarter of the previous year, utilizing cutting-edge 4-nanometer process technology. Additionally, a second fab is anticipated to start ramping up production soon, employing even more advanced 3-nanometer technology.
Contrasting Performance in Japan
While TSMC celebrates its achievements in Arizona, its operations in Japan are not performing as well. The Japan Advanced Semiconductor Manufacturing (JASM), in which TSMC holds a 73% stake, reported a loss of NT$4.52 billion in the first half of this year, worsening from a NT$1.48 billion loss a year earlier. JASM had commenced volume production late last year and plans for a second fab construction are set to kick off later this year.
Government Support Boosts Operations
In a move that bolstered its financial standing, TSMC received NT$67.13 billion in government subsidies during the first half of the year, a significant rise from NT$7.96 billion in the previous year. These subsidies primarily help offset various costs associated with property, plants, and equipment. Furthermore, TSMC is in a position to apply for a 25% investment grant on qualified projects, enhancing its financial backing.
As the demand for advanced chips surges, particularly for applications integrated into artificial intelligence, TSMC is expediting manufacturing at its Arizona facility. Plans to abbreviate production timelines for two additional fabs by several quarters were confirmed during a quarterly earnings call. Once all six fabs in Arizona are fully operational, TSMC projects that approximately 30% of its most advanced chips will be produced within the state.
Financial Performance and Future Revenues
For the second quarter of 2025, TSMC has reported revenues approximately $30 billion, indicating an 18% increase from the previous quarter and a substantial 44% rise compared to the same quarter last year. The company’s net income for the quarter ending June 30, 2025, reached roughly $13.6 billion, representing a striking 61% surge from the same period the prior year. Forecasts suggest that revenues might climb to $33 billion in the following quarter.
Concerns Over Tariffs
Despite the positive financial results and expansion efforts, TSMC’s officials have expressed concerns regarding possible tariffs that could dampen demand for their products and challenge the successful completion of their Arizona project. Acknowledging that decisions made overseas directly affect customer needs, TSMC has previously requested federal officials to exempt foreign-made semiconductors from potential tariffs to prevent any negative impact on its expansion plans in Arizona.
This combination of strong operational performance, financial backing through subsidies, and proactive measures to address external challenges positions TSMC favorably in the semiconductor industry as it continues to expand its footprint in Arizona.
Deeper Dive: News & Info About This Topic
- Taipei Times: TSMC’s Arizona Profit
- Wikipedia: Taiwan Semiconductor Manufacturing Company
- TSMC: Hiring News
- Google Search: Semiconductor Industry
- Axios: TSMC Accelerates Phoenix Production
- Encyclopedia Britannica: Semiconductor
- AZ Family: TSMC Tariffs Report
- Google News: TSMC Arizona Expansion
Author: STAFF HERE PHOENIX WRITER
PHOENIX STAFF WRITER The PHOENIX STAFF WRITER represents the experienced team at HEREPhoenix.com, your go-to source for actionable local news and information in Phoenix, Maricopa County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Waste Management Phoenix Open, Cactus League Spring Training, and Arizona State Fair. Our coverage extends to key organizations like the Greater Phoenix Chamber of Commerce and Visit Phoenix, plus leading businesses in technology and healthcare that power the local economy such as Intel and Banner Health. As part of the broader HERE network, including HERETucson.com, we provide comprehensive, credible insights into Arizona's dynamic landscape.
