The Arizona unit of Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest chip contract manufacturer, turned a profit in the first half of this year for the first time in four years of operation, a company financial statement showed.
TSMC's wholly-owned Arizona unit contributed NT$4.52 billion ($150.1 million) in net profit, compared with a loss of NT$4.34 billion in the same period last year, the statement showed.
The company attributed the shift to strong market demand and higher plant utilization.
This is a sign from Taiwan Semiconductor Manufacturing Company at a manufacturing plant in Phoenix, Arizona, on March 3.
Apple Inc., NVIDIA Corp. and Advanced Micro Devices Inc. are among the Arizona branch's major customers.
The company said its first factory in Arizona began high-volume production in the fourth quarter of last year using 4-nanometer process technology, and that its second factory will soon use 3-nanometer technology to increase production.
By comparison, the company's Japanese subsidiary Japan Advanced Semiconductor Manufacturing Co. (JASM) lost NT$4.52 billion in the first half, widening from a loss of NT$1.48 billion in the same period last year.
TSMC holds a 73% stake in the Kumamoto-based joint venture, whose first wafer fab entered mass production at the end of last year. The company said construction of a second fab is expected to begin later this year.
The statement also showed that TSMC received government subsidies of NT$67.13 billion in the first half of this year, a significant increase from NT$7.96 billion in the same period last year. The funds come from the United States, Germany, Japan and China.
TSMC said the subsidies are mainly used to offset the purchase costs of property, plant and equipment, as well as part of construction and production expenses.
The company is also eligible to apply for a 25% investment grant for eligible projects, it added.