[News] TSMC Denies Scaling Down Japan, Taiwan Expansion After $100B U.S. Investment

At the White House, President Donald Trump and TSMC CEO C.C. Wei announced the foundry giant’s plan to invest at least another $100 billion in the U.S. While some worry this could divert funds from other projects, TSMC told Central News Agency that its Japan and Taiwan plans remain on track, with all plans proceeding as scheduled.

Update on TSMC’s Global Expansion Plans

According to Central News Agency, TSMC’s first fab in Kumamoto, Japan, has begun mass production at the end of 2024, and the second fab is set to begin construction in 2025.

In Taiwan, TSMC continues to expand its 3nm production capacity at the Tainan Science Park and is establishing multi-phase 2nm wafer fabs in Hsinchu and Kaohsiung Science Parks, as noted by Central News Agency. Additionally, TSMC is expanding its advanced packaging facilities across multiple locations in Taiwan.

The Central News Agency report also highlights TSMC and Amkor Technology’s expanded partnership, including a planned new facility in Peoria, Arizona. Notably, TSMC’s broader U.S. investment plan includes two advanced packaging facilities, prompting market speculation about potential impacts on its collaboration with Amkor. However, TSMC has stated that its partnership with Amkor remains unaffected, as reported by Central News Agency.

Losses and Profitability Outlook of TSMC’s Overseas Expansions

Meanwhile, according to Commercial Times, many of TSMC’s overseas fabs are still in the early stages of development, with only a few production lines currently in operation.

Therefore, as highlighted by Commercial Times, TSMC Arizona posted a loss of NT$14.3 billion, while JASM also reported a loss of NT$4.38 billion.

JASM’s first Kumamoto fab began mass production in the fourth quarter of 2024, while the Arizona fab commenced operations in early 2025, as noted in the report from Commercial Times.

The Commercial Times report, citing industry sources, states that government subsidies could help offset the increased costs associated with overseas fab construction. In particular, JASM, with the aid of subsidies, is projected to be the fastest to break even.

TSMC Arizona is also expected to achieve profitability under current conditions, as the report from Commercial Times points out that it currently receives the highest level of government subsidies among those provided by other countries.

Read more

• [News] TSMC Scales up U.S. Investment with $100B More, Adding Five New Chip Facilities in Coming Years
• [News] TSMC’s $100B U.S. Bet: Six Big Questions Behind the Largest Foreign Investment in U.S. History

(Photo credit: TSMC)