U.S. company TSMC’s profits surge more than sevenfold in second half of the year

At the end of 2024, TSMC’s first factory in Arizona (which will gradually acquire neighbors) will begin mass production of 4nm products for local customers. Judging from its performance in the second half of last year, it successfully surpassed China’s TSMC and became the most profitable enterprise among foreign-funded enterprises. In the first six months of this year, profits at TSMC’s Arizona plant grew 663% to a record $1.1 billion.

Image source: TSMC

In total, as mentioned TrendForceIn the first half of this year, profits from TSMC’s four major overseas bases increased by 215% year-on-year, or US$1.84 billion. TSMC’s U.S. factories account for more than 60% of the company’s overseas profits. However, in the second quarter alone, Arizona.com’s profits increased 307.8% year-on-year to $541 million, but fell 8.2% quarter-on-quarter. The company’s second-quarter investment income fell 13.6% quarter-on-quarter to $458 million. TSMC’s accelerated construction of new U.S. factories will continue to increase spending in the future.

TSMC’s management estimates that the company’s profit margin will drop by two to three percentage points in the initial stage of production of new overseas factories. As production increases, the impact will increase to 3-4 percentage points. By the second half of next year, TSMC will have a second U.S. factory operational, capable of producing 3nm wafers. The company plans to spend a total of up to $265 billion building businesses in the United States over the next few years. As a result of these activities, Arizona should have ten silicon wafer processing plants and two facilities that use advanced methods to test and package wafers.

In the first half of the year, the company located in Nanjing, China ranked second among TSMC’s overseas bases, with a profit of US$470 million. Second-quarter standalone revenue fell 2.6% quarter-to-quarter to $232 million. The Japanese joint venture JASM just turned a profit this year, with profits of US$30 million in the first quarter and US$23 million in the second quarter. The earthquake in July did not cause major damage to Japanese companies, but some products will have to be rejected and a lot of time will be spent reconfiguring equipment. JASM’s third quarter financial performance may not be as successful.