TSMC’s Arizona factory turns a profit
Story Highlights
- TSMC’s Arizona plant reports $150.1 million profit in first half 2025
- TSMC plans $100 billion expansion for north Phoenix fab site
- U.S. government considers taking equity stakes in chipmakers in exchange for grants
Update: The U.S. Department of Commerce has reportedly changed course on pursuing equity stakes in TSMC and Micron Technology in exchange for federal CHIPS Act subsidies, Reuters reported Thursday. While the White House is not considering equity in TSMC and Micron, companies that do not increase their U.S. investment commitments may have to provide equity in exchange for subsidies, Reuters reported, citing commentary from a U.S. Department of Commerce official.
TSMC reported a net profit of $150.1 million in U.S.dollars for its Arizona subsidiary in the first half of 2025, compared with a net loss of $143.4 million during the same time last year, according to a recent financial statement.
The company did not provide further commentary about its financial statement, although CEO C.C. Wei said on a July 17 earnings call that the chip giant is seeing strong AI-related demand from its U.S. customers, prompting a decision to ramp up production in Arizona.
TSMC’s first Arizona fab entered high-volume production in late 2024, using N4 process technology with a yield comparable to its Taiwan fab. The company completed construction of its second fab — which will utilize 3-nanometer process technology — in April and broke ground on its third fab at its north Phoenix site that same month.
TSMC’s financial statement indicated the company received a total of $2.21 billion in government subsidies from the U.S., Germany, Japan and China during the first half of 2025. That amount was an increase from $262.7 million in government subsidies that TSMC received in the first half of 2024.
The company reported the government subsidies were used to offset purchase costs of property, plants and equipment. It also allocated a portion for construction and production expenses, according to the financial statement.
TSMC Arizona is also eligible to apply for a 25% grant for “qualified investments,” the financial statement shows.
TSMC (NYSE: TSM) in March announced plans to invest an additional $100 billion to expand its north Phoenix fab site, on top of its previous commitment of $65 billion. The expansion calls for three more computer chip factories, two advanced packaging centers and a research and development center.
White House looks at equity stakes in chipmakers
TSMC Arizona’s revenue-positive news comes as the U.S. Department of Commerce Secretary Howard Lutnick is reportedly looking into the federal government taking equity stakes in TSMC, Intel, Micron Technology and other chipmakers in exchange for CHIPS Act grants, Reuters reported, citing a White House official and a person familiar with the matter.
In June, Lutnick said the White House was renegotiating some CHIPS Act funding agreements with semiconductor firms to secure better deal terms and additional domestic investments, the Business Journal previously reported.
It’s unclear whether TSMC has engaged in discussions with Lutnick about the federal government taking any equity stake in the company.
A TSMC spokesperson declined to comment on the Reuters report.
The Commerce Department finalized an agreement with TSMC late last year for a CHIPS Act award package consisting of a $6.6 billion grant, $5 billion loan and a tax credit for a portion of the company’s capital expenses.
White House press secretary Karoline Leavitt, meanwhile, confirmed on Tuesday that Lutnick was working on a deal to take a 10% government stake in Intel, Reuters reported.
That report comes just a day after Japanese tech investment firm SoftBank Group Corp. agreed to acquire $2 billion worth of Intel shares, stating its investment would accelerate access to advanced technologies to support digital transformation, cloud computing and next-generation infrastructure, the Business Journal previously reported.
Under the terms of the agreement, SoftBank will pay $23 per share of Intel common stock. The transaction is subject to customary closing conditions.
U.S. Senator Bernie Sanders on Wednesday expressed support for the White House’s proposal to obtain an equity stake in chipmakers in exchange for federal CHIPS Act grants, Reuters reported.
“If microchip companies make a profit from the generous grants they receive from the federal government, the taxpayers of America have a right to a reasonable return on that investment,” Sanders said in a statement to Reuters.
TSMC’s stock closed at $228.60 on Wednesday, down 1.7%. Intel’s stock dropped 6.9% on Wednesday to $23.54 a share, giving back all of its previous gains from a day earlier on the news of the SoftBank investment.