TSMC’s third-quarter financial report showed that its U.S. subsidiary only earned about NT$40 million in a single quarter, which was almost a plunge from the NT$4.232 billion in the previous quarter, highlighting that the huge initial costs of build...
TSMC’s third-quarter financial report showed that its U.S. subsidiary only earned about NT$40 million in a single quarter, which was almost a plunge from the NT$4.232 billion in the previous quarter, highlighting that the huge initial costs of building factories in the United States are rapidly eroding profits.
Industry analysis shows that since the U.S. is still immature in aspects such as supply chain perfection, technical talent training, and equipment maintenance, operating expenses are generally higher than those in Taiwan and Japan. In addition, the cost of dispatching engineering teams and factory construction continues to rise. U.S. factories are naturally under heavy financial pressure before advanced processes are mass-produced.
TSMC’s second wafer fab in Arizona is scheduled to be installed in the second quarter of 2026, and will then fully enter the construction and equipment adjustment phase. Since this batch of new production capacity will use EUV and higher-standard factory facilities, the depreciation burden will inevitably increase, and it is still difficult to see significant improvement in short-term financial reports.
The legal person pointed out that the real key to the US base is not the immediate profit figures, but whether advanced processes such as 3nm and 2nm can be successfully implemented and increase production capacity utilization. TSMC currently plans to launch 3nm mass production in the United States in 2027, and is also conducting feasibility assessments of 2nm technologies including GAA and Backside Power. Once advanced nodes are successfully introduced, American factories will be able to play a more important role in the strategic layout of global advanced processes.
As the demand for advanced packaging increases, the shortage of local supply chains in the United States has become increasingly apparent. A number of Taiwanese materials and equipment factories have successively invested in U.S. projects in response to TSMC's expansion progress. Industry insiders said that the cost structure of packaging and testing operations in the United States is higher and the delivery time pressure is greater. Therefore, whether it can obtain stable support from the Taiwanese supply chain will directly affect the future expansion speed of advanced packaging in the United States base.
From the overall market perspective, AI continues to drive up the full capacity of advanced processes, and 3nm and 2nm are still in short supply for a long time; on the other hand, mature processes are facing stronger price reduction pressure due to overcapacity. Coupled with the fact that Chinese wafer fabs are actively seizing the market through price, the quotations for mature processes may be further forced to drop.
TSMC’s Arizona Facility Hit Hard by Profit Drop as Rising Operating Costs Give a Reality Check to the “Made in USA” Narrative
