TSMC Accelerates Third U.S. Fab Construction Despite $3.2B Loss at Arizona Plant, Advances Cutting-Edge Process Technology

TSMC's investment pace in the United States has not slowed down due to short-term financial losses. According to the latest information, despite its Arizona factory incurring over 3.2 billion yuan in losses during the past year, the semiconductor giant remains committed to advancing the construction and development of its local facilities. Chairman and CEO C.C. Wei recently announced plans for further expansion of semiconductor production capacity in the United States. He revealed that the third wafer fab in Arizona has officially broken ground, marking another significant strategic move in TSMC's U.S. market presence.

The 2024 annual report shows that while TSMC's first Arizona fab has entered mass production, the time gap between production and revenue recognition has led to expanded losses for its subsidiary TSMC Arizona Corporation. The deficit increased from NT$10.925 billion in 2023 to NT$14.298 billion in 2024 (equivalent to over 3.2 billion yuan). However, TSMC's U.S. investments are yielding returns. The Arizona facilities have secured support from at least five major clients including Apple, NVIDIA, AMD, Broadcom, and Qualcomm. With these clients entering production phases and the upcoming operation of the second and third fabs, the Arizona complex is expected to achieve economies of scale and gradually reduce losses.

Currently, the first Arizona fab began 4nm process technology production in Q4 2023. The second fab has completed building construction and is installing cleanroom and electromechanical systems, preparing for 3nm technology implementation. The third fab will employ more advanced 2nm or beyond process technologies to meet growing market demands.

These investments demonstrate TSMC's deep understanding of global semiconductor markets and its strategic vision as an industry leader. Despite current financial challenges, the company maintains its long-term commitment to U.S. market development, aligning with future industry trends and customer needs.