According to the latest financial report disclosed by TSMC, TSMC’s factory in Arizona, USA, has finally turned a profit after four years since the construction of the factory. TSMC's factory in Phoenix, Arizona is its first stop in setting up a factory in the United States. It is also the only factory that has been put into production and is currently 100% owned by TSMC. In May 2020, TSMC announced that it would build a factory in Phoenix with an initial investment of US$12 billion.
In August 2022, the U.S. federal and Arizona state governments issued "tens of billions of subsidies" to TSMC, providing it with 6.6 billion subsidies and 5 billion US dollars in loans through the "Chip and Science Act", which slightly alleviated some of the pressure on high factory construction and operating costs. The current investment scale has increased three times and has reached US$165 billion.
In 2024, the factory's loss reached a historical maximum of US$458 million, and the cumulative loss has reached US$1.25 billion. However, in the fourth quarter of that year, the first 4nm factory "Fab 21" officially started mass production of chips. In 2025, it achieved a net profit of approximately US$516 million, turning a strong profit into a loss, and performing better than market expectations.
As for why profitability is so strong, this is due to the processor market driven by AI last year. Although it is a 4nm process factory, it can already meet the needs of AMD Ryzen, NVIDIA Blackwell, Qualcomm Snapdragon and other companies, which has brought a steady stream of orders. It is expected that in early 2027, TSMC will also upgrade its Arizona production line to 3nm.
In TSMC’s plan, the Arizona factory will cover an area of more than 2,000 acres (approximately 8.09 million square meters). After the first factory, Fab 21, the second factory may be put into production next year, and the third one is under construction and is expected to be completed in 2030. The construction target of this factory area is to reach 6.
Currently, Fab 21’s monthly production capacity is 10,000 to 30,000 wafers. In comparison, there are four factories with a monthly production capacity of 100,000 wafers on the island of Taiwan, as well as seven smaller factories. Once all six factories in Arizona are completed, the monthly production capacity of 100,000 wafers will be achieved.