Kumamoto: The subsidiary of Taiwan Semiconductor Manufacturing Co. (TSMC) in Kumamoto, Japan, recorded a profit in the first quarter of this year, marking the first instance of profitability since mass production began at the end of 2024.
According to Focus Taiwan, the financial statement released by contract chipmaker TSMC on Friday revealed that Japan Advanced Semiconductor Manufacturing Inc. (JASM), a joint venture managing the fab in Kumamoto, reported a profit of NT$951 million (US$30.19 million) for the January-March period. This is a significant turnaround from a loss of NT$1.39 billion in the previous quarter and a loss of NT$3.25 billion in the first quarter of 2025.
Market analysts noted the financial report from the first Kumamoto fab indicates an improvement in production utilization. The fab employs mature processes, including 12-, 16-, 22-, and 28-nanometer technologies, catering to the automotive and industrial sectors, as stated by TSMC.
Beyond the first fab, JASM, in which TSMC holds a 77 percent stake, has commenced the construction of a second fab in Kumamoto. Plans for the second fab initially included the 6nm process; however, these were revised in February to incorporate the advanced 3nm process, driven by robust global AI demand.
In the United States, TSMC's wholly owned subsidiary TSMC Arizona reported a profit of NT$18.81 billion in the first quarter, rising from NT$11.37 billion in the previous quarter and significantly up from NT$496 million in the same period last year. TSMC indicated that Arizona's first-quarter profit surpassed the NT$16.14 billion achieved for the entire year of 2025.
Analysts suggested that the Arizona fab has capitalized on the current AI boom, serving major clients in the U.S. market. TSMC's first fab in Arizona commenced mass production in the fourth quarter of 2024, utilizing the 4nm process. The second fab is expected to begin commercial production in the second half of 2027, adopting the 3nm process.
Construction of a third fab in Arizona is underway, and TSMC has submitted applications for the construction of a fourth fab and the first IC assembly plant in the state. The company plans to invest US$165 billion in building six advanced fabs, two IC assembly plants, and a research and development center in Arizona.
In Dresden, Germany, European Semiconductor Manufacturing Co. (ESMC), in which TSMC owns a 70 percent stake, recorded a loss of NT$278 million in the first quarter, with fab construction ongoing. TSMC disclosed that it received NT$505 million in subsidies from the U.S., Japanese, and German governments for its investments in these countries in the first quarter, a decrease of 98.56 percent compared to the previous year.