Taiwan Semiconductor Manufacturing Co. (TSMC) continues its ambitious expansion into global markets, despite facing significant financial challenges in several international ventures. The company's latest shareholder report reveals substantial losses at its new facilities in the US, Japan, and Europe.

In its Arizona facility, TSMC reported a loss of nearly NT$14.3 billion (approximately RMB 3.21 billion) for 2024, marking the largest financial setback among its overseas operations. This site, which is central to TSMC's push for "Made in the USA" semiconductor production, accumulated a total loss of NT$39.4 billion (approximately RMB 9.01 billion) over the past four years before its first production run began in Q4 of 2024.

Despite these losses, TSMC is pressing forward with its expansion. On an earnings call held on April 17, 2025, TSMC CEO C.C. Wei revealed that the company had completed construction of its second fab at its North Phoenix campus ahead of schedule to meet rising demand for AI-related chips. The new fab will utilize advanced 3-nanometer process technologies. Wei also stated that TSMC is accelerating its production timeline for this second fab, which was initially set to begin operations in 2028. While the CEO did not provide a specific start date, TSMC is now working to speed up the volume production schedule.

In addition to its US operations, TSMC's international ventures continue to face financial challenges. The company's Japan-based subsidiary, JASM, posted a loss of NT$4.375 billion (approximately RMB 1.01 billion) for 2024, marking its largest loss since operations began in Japan. This brings JASM's cumulative losses over the past three years to NT$7.9 billion (approximately RMB 1.8 billion). Meanwhile, TSMC's European joint venture, ESMC, reported losses of over NT$500 million (approximately RMB 114 million) for 2024.

Despite these setbacks, TSMC's operations in China have been performing well. Its Nanjing facility reported a profit of NT$25.95 billion (approximately RMB 5.83 billion) in 2024, a notable improvement from the previous year's NT$21.76 billion (approximately RMB 4.97 billion). TSMC's Nanjing plant has remained a steady performer, with profits consistently exceeding NT$20 billion (approximately RMB 4.56 billion) annually for the past three years.

TSMC is also continuing to expand its US operations with plans to invest a total of US$165 billion (approximately NT$5.1 trillion) in the country. The company's Arizona campus will host three additional wafer fabs, two advanced packaging plants, and a research center. TSMC's Chairman, C.C. Wei, emphasized that the expansion in Arizona is customer-driven and that the plant will be crucial for producing up to 30% of TSMC's future 2nm and more advanced semiconductor processes.

Regarding its Japan and European investments, TSMC is not slowing down. The company's first specialized-process fab in Kumamoto, Japan, began production at the end of 2024, and its second fab in Japan is set to break ground later this year, pending local infrastructure developments.

With a major focus on advanced semiconductor manufacturing for AI applications, TSMC is positioning itself to lead the global market in next-generation chip technologies, despite the challenges and losses faced in its international ventures.