Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s biggest contract chipmaker, booked its first-ever profit from its Arizona subsidiary in the first half of this year, four years after operations began, a company financial statement showed.
Wholly owned by TSMC, the Arizona unit contributed NT$4.52 billion (US$150.1 million) in net profit, compared with a loss of NT$4.34 billion a year earlier, the statement showed.
The company attributed the turnaround to strong market demand and high factory utilization.
Photo: Bloomberg
The Arizona unit counts Apple Inc, Nvidia Corp and Advanced Micro Devices Inc among its major customers.
The firm’s first fab in Arizona began high-volume production in the fourth quarter of last year, utilizing 4-nanometer process technology, while the second fab is to ramp up production soon with 3-nanometer technology, the company said.
By contrast, the company’s Japanese unit, Japan Advanced Semiconductor Manufacturing (JASM), posted a NT$4.52 billion loss in the first half, widening from a loss of NT$1.48 billion a year earlier, the statement showed.
TSMC owns a 73 percent stake in the Kumamoto-based venture, whose first fab entered volume production late last year. A second fab is slated to begin construction later this year, the company said.
The statement also showed that TSMC received NT$67.13 billion in government subsidies in the first half of this year, up sharply from NT$7.96 billion a year earlier. The funds came from the US, Germany, Japan and China.
TSMC said the subsidies were primarily used to offset the purchase costs of property, plants and equipment, as well as a portion of construction and production expenses.
The company is also eligible to apply for a 25 percent investment grant on qualified projects, it added.
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