TSMC Arizona plant revenue grows, profitability fluctuates
TSMC's factory in Arizona, USA, is seeing its revenue contribution increase within the company's overall financials, though profitability shows variability. The plant is a key part of the company's advanced chip production.
TSMC's advanced chip manufacturing facility in Arizona, USA, is increasingly contributing to the company's overall revenue and profits. Data from Bank of America indicates that the plant, utilizing a 4-nanometer process, is generating significant income. This facility produces semiconductors, including AI GPUs for clients such as Nvidia.
The Arizona operations are becoming a crucial part of TSMC's global supply chain. Due to the concentration of advanced packaging capabilities in Taiwan, chips manufactured in Arizona are shipped to Taiwan for final packaging processes. Future phases of the Arizona site are planned to incorporate 3-nanometer, 2-nanometer, and 1.6-nanometer process technologies, alongside the construction of an advanced packaging plant.
According to analysts, the Arizona facility first achieved profitability in the first quarter of 2025. Since then, its contribution to TSMC's total revenue and profit has steadily risen. In the second quarter of 2025, the plant accounted for approximately 1% of TSMC's total profits and 2% of revenue. Despite concerns over higher construction costs in the U.S., orders from key customers like Apple and Nvidia have begun to translate into financial returns.
While profitability saw a dip in the third quarter of 2025, it has since resumed an upward trend. The first quarter of 2025 marked the highest profit contribution from the Arizona plant, exceeding 3%, with a similar revenue share. However, in the second quarter of 2025, revenue share continued to increase, while profit contribution fell below 3%. In the second quarter, the Arizona plant's revenue reached a new high of over NT$40 billion, but its profit was less than NT$19 billion.