TSMC's Global Expansion: Profits Soar on AI Demand

TSMC's subsidiary in Kumamoto, Japan, turned profitable for the first time in Q1 2025, driven by improved production utilization and mature processes. Meanwhile, TSMC Arizona capitalized on the AI boom, posting significant profits. Expansion plans are underway in Japan, the US, and Europe with new fabs and advanced technologies.

The Taiwanese semiconductor giant, Taiwan Semiconductor Manufacturing Co (TSMC), reported a milestone achievement with its Kumamoto, Japan, subsidiary turning a profit in the first quarter of 2025. This marks a crucial turning point since the start of mass production at the end of 2024, as detailed by Focus Taiwan.

Japan Advanced Semiconductor Manufacturing Inc (JASM), the joint venture operating TSMC's first fab in Kumamoto, achieved a profit of NT$951 million (USD 30.19 million) from January to March. This is a significant improvement from the previous quarter's NT$1.39 billion (USD 44.13 million) loss, and the NT$3.25 billion (USD 103.17 million) loss recorded in the same period of 2025. Market analysts attribute this success to enhanced production utilization with mature processes targeting the automotive and industrial sectors.

Anticipating growing global AI demand, JASM has shifted plans for its second Kumamoto fab to incorporate the cutting-edge 3nm process. In the US, TSMC's Arizona subsidiary recorded robust results as well, with profits soaring to NT$18.81 billion (USD 597.14 million) on the back of the ongoing AI revolution. Expansion continues with construction of new fabs globally, including in Germany, as TSMC invests heavily in future growth potential.