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As TSMC advances its U.S. expansion, growing attention has been placed on the contribution of its Arizona operations. According to its 2024 annual report, TSMC’s Arizona facility posted a loss of nearly NT$14.3 billion last year, making it the company’s most costly overseas site. In contrast, its Nanjing operations recorded a strong profit of nearly NT$26 billion during the same period.
A report from Economic Daily News highlights that TSMC’s Arizona subsidiary reported consecutive losses of NT$4.81 billion, NT$9.43 billion, and NT$10.924 billion in its 2021, 2022, and 2023 annual reports, with cumulative losses over the past four years exceeding NT$39.4 billion. The report notes that 2025 will mark the Arizona fab’s first full year of mass production, which could help narrow losses. However, it also warns that ongoing investment might prolong losses.
TSMC’s U.S. Commitment
During the company’s earnings call last week, TSMC CEO C.C. Wei emphasized that the company is ramping up its investment in the U.S.. He noted that once the projects are completed, about 30% of TSMC’s 2nm capacity will be based in Arizona, creating an independent advanced manufacturing cluster.
Wei confirmed that construction of TSMC’s second Arizona fab has been completed, following the first fab’s entry into volume production in the fourth quarter of 2024. He also revealed that construction of the third fab designed to support more advanced nodes, including N2 and A16—is expected to begin later this year.
Amid these developments, sources cited by Economic Daily News indicate that TSMC is considering raising prices for 4nm chip production at its U.S. facility by up to 30%, citing strong demand and rising costs, as major semiconductor players such as NVIDIA and AMD are expanding U.S.-based manufacturing, with TSMC’s Arizona capacity playing a central role in their strategies.
TSMC’s China Business Posts Consistent Gains
In contrast, TSMC’s China operations have continued to deliver strong and stable profits. According to the report, its Nanjing subsidiary posted a net profit of NT$25.954 billion in 2024, surpassing the NT$21.755 billion recorded in 2023 and NT$20.486 billion in 2022. Over the past three years, TSMC’s Nanjing operations have consistently generated profits of more than NT$20 billion annually—a significant improvement from the NT$12.283 billion reported in 2021.
TSMC Maintains Japan and Europe Expansion Plans Despite Losses
Meanwhile, despite reporting losses in Japan and Europe, TSMC confirmed that it has no plans to slow its expansion in these regions.
According to its annual report, TSMC’s Japanese subsidiary, JASM, posted a loss of NT$4.375 billion in 2024—the largest since TSMC entered the Japanese market—with cumulative losses over the past three years reaching NT$7.933 billion, as highlighted by Economic Daily News. Nevertheless, the company announced that construction of its second fab in Kumamoto, Japan, will begin later this year, reinforcing its commitment to its global expansion strategy.
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(Photo credit: TSMC)
