The Japan Advanced Semiconductor Manufacturing Inc (JASM), a subsidiary of Taiwan Semiconductor Manufacturing Co (TSMC), has reported a profit for the first quarter of 2025. This marks a significant milestone as it is the first time the Kumamoto fab has been profitable since it began mass production in late 2024.
In its financial statement, TSMC disclosed that JASM achieved a profit of NT$951 million (approximately $30.19 million) during the January-March period. This is a notable recovery from a loss of NT$1.39 billion ($44.13 million) in the previous quarter and a loss of NT$3.25 billion ($103.17 million) in the first quarter of 2024.
Production Improvements
Market analysts have pointed out that the improved financial performance is indicative of better production utilization at the Kumamoto facility. The first fab employs mature manufacturing processes, including 12-, 16-, 22-, and 28-nanometer technologies, primarily serving the automotive and industrial sectors.
Expansion Plans
In addition to the first fab's success, JASM is also advancing with the construction of a second fab in Kumamoto. Initially planned to utilize a 6nm process, the project has been updated to incorporate the more advanced 3nm process, responding to the growing global demand for advanced semiconductor technologies.
Performance in the U.S.
Meanwhile, TSMC's wholly owned subsidiary in Arizona reported a profit of NT$18.81 billion (around $597.14 million) for the same quarter. This figure represents an increase from NT$11.37 billion ($360.95 million) in the previous quarter and a significant rise from NT$496 million ($15.75 million) in the first quarter of 2024. The Arizona facility has benefited from the current demand in the semiconductor market.
Future Developments
TSMC's Arizona fab began mass production using the 4nm process in late 2024, with plans for a second fab to start production in the latter half of 2027 using the 3nm process. Additionally, TSMC is expanding its operations in Arizona, with plans for multiple new fabs and assembly plants.
International Operations
In Europe, TSMC's European Semiconductor Manufacturing Co. (ESMC), where TSMC holds a 70% stake, reported losses of NT$278 million ($8.83 million) in the first quarter, as construction of its fab continues. TSMC also received NT$505 million ($16.03 million) in subsidies from the governments of the U.S., Japan, and Germany for its investments in these regions, although this represents a significant decline of 98.56% from the previous year.
