TSMC is facing concerns over profit deterioration due to rising production costs and large-scale additional investments anticipated with the operation of its Arizona fab, which is being expedited in response to tariff policies under Trump’s second administration. Despite initiating operations at the Arizona plant in the fourth quarter of the previous year, TSMC reported a record operating loss of 14.298 billion New Taiwan dollars (approximately 623.9 billion won) due to staffing costs. Cumulative losses over the past four years have amounted to 39.452 billion New Taiwan dollars (about 1.7248 trillion won).
As TSMC moves forward with substantial investments in the U.S., totaling approximately 165 billion dollars for the Arizona plant construction and an additional 100 billion dollars announced during the meeting with President Trump, concerns about its profitability persist. Furthermore, large-scale investments in advanced processes, such as the next-generation 2nm technology planned for production in the U.S., add to the financial strain, although they cater to demands from local big tech firms like Apple, Nvidia, and AMD.
Simultaneously, Samsung Electronics is also contemplating the profitability challenges associated with the operation of its U.S. manufacturing base. Samsung plans to commence operations at its advanced foundry production line in Taylor, Texas, by the end of next year following an investment plan of 17 billion dollars announced in 2021. Unlike TSMC, which has secured significant orders from major clients, Samsung is facing difficulties in acquiring such orders, thereby amplifying concerns over profitability as it approaches the launch of the U.S. facility.