TSMC Arizona Reports NT$14.3B Loss in 2024 Despite Ramp-Up

TSMC has released its 2024 annual report, revealing continued progress in its global manufacturing footprint, particularly in the United States. While the company's first semiconductor fabrication plant (fab) in Arizona has officially entered mass production using 4nm process technology, revenue recognition has yet to align with production output. As a result, its U.S. subsidiary, TSMC Arizona Corporation, reported a widened net loss of NT$14.298 billion in 2024—up from NT$10.925 billion in 2023.

The Arizona facility has already secured backing from at least five major global technology leaders, including Apple, NVIDIA, AMD, Broadcom, and Qualcomm. Industry observers expect that as chip production volume ramps up and future fabs come online, the Arizona operation will achieve economies of scale, helping to narrow financial losses over time.

Construction of TSMC's second fab in Arizona has been completed, and facility system installations—including cleanroom and electromechanical systems—are currently underway. This fab is set to manufacture chips using 3nm process technology. Meanwhile, planning is in progress for a third facility in Arizona, which is expected to adopt 2nm or even more advanced process technologies to meet increasing demand for high-performance, cutting-edge semiconductors.

Beyond the U.S., TSMC's global expansion efforts have also led to short-term financial impacts. The company's subsidiaries in Japan (JASM) and Germany (ESMC) reported expanded losses in the previous fiscal year. JASM's losses rose from NT$2.966 billion to NT$4.376 billion, while ESMC's losses increased from NT$18 million to NT$557 million.

With operational costs significantly higher outside Taiwan, TSMC anticipates that its planned US$100 billion investment in Arizona will initially impact gross margins by approximately 2–3% annually over the next five years, potentially widening to 3–4% in later years. Nevertheless, TSMC remains committed to maintaining long-term gross margins above 53%, leveraging advanced technology leadership and robust global demand for semiconductors.