TSMC's Kumamoto unit turns profitable

Taiwan Semiconductor Manufacturing Co.'s first chip plant in Kumamoto, Japan, posted its first quarterly profit in the January-March period, according to a Focus Taiwan report published on May 16. The report said the result marked the first profitable quarter for the subsidiary since mass production at the fab started at the end of 2024. The unit, Japan Advanced Semiconductor Manufacturing, is TSMC's main manufacturing vehicle in Japan. The result gives TSMC a new data point as it expands production outside Taiwan in Japan, the United States and Europe. ### Which TSMC unit in Japan made money, and when did production start? Japan Advanced Semiconductor Manufacturing, or JASM, is the Kumamoto subsidiary cited in the Focus Taiwan report. Focus Taiwan said the first fab became profitable in the first quarter of 2026 after beginning mass production in late 2024. The plant has been producing logic chips mainly in the 12-nanometer to 28-nanometer range for automotive and industrial customers, according to earlier Focus Taiwan reporting. (focustaiwan.tw) February 2026 brought TSMC's next Japan expansion step. Focus Taiwan reported on Feb. 5 that TSMC would make 3-nanometer chips at its second Kumamoto plant, which is still under construction, after CEO C.C. Wei met Japanese Prime Minister Sanae Takaichi. Taiwan's government later approved the 3-nanometer upgrade for that second fab, Focus Taiwan reported on March 31. ### How does the Japan result compare with TSMC's Arizona build-out? (focustaiwan.tw) TSMC said on March 4, 2025 that it intended to add $100 billion to its U.S. investment plan, lifting the total expected Arizona commitment to $165 billion from the previously announced $65 billion. The company said the Arizona site would include six wafer fabs, two advanced packaging facilities and an research-and-development team center. TSMC's Arizona site page describes the project as the largest foreign direct investment in a greenfield project in American history. (focustaiwan.tw) Phoenix has also required large supporting infrastructure. AZ Big Media reported in September 2025 that TSMC Arizona had begun construction of a 15-acre industrial reclamation water plant. The same outlet reported that the company was operating at a 65% water recycling rate on the Phoenix campus and said the new plant was intended to support near-zero liquid discharge. In January 2026, AZ Big Media reported that TSMC Arizona bought 900 acres of land in north Phoenix for $197 million at a state land auction. (pr.tsmc.com) ### What does TSMC say it is building in Arizona right now? TSMC's Arizona site says the company first announced a $12 billion Phoenix fab in 2020 and raised the project to $40 billion in 2022 with a second fab. The company now says the overall U.S. plan has expanded to $165 billion. A 2022 TSMC release said the first Arizona fab was scheduled to use N4 process technology and the second fab was scheduled for 3-nanometer production. (azbigmedia.com) March 2026 updates on the Arizona news page show the company still adding local workforce and community programs as the site grows. TSMC has not, in the materials reviewed here, published a comparable profit disclosure for the Arizona operation. ### Why does the Kumamoto profit matter inside TSMC's broader expansion? April 2026 comments from Chairman C.C. Wei tied TSMC's overseas projects to demand growth. (tsmc.com) Focus Taiwan reported on April 16 that Wei said TSMC was expanding 3-nanometer capacity in Taiwan, the United States and Japan to meet demand tied to artificial intelligence applications. The Kumamoto result adds an earnings milestone to that expansion, though TSMC has not publicly detailed the subsidiary's profit amount in the source reviewed here. (tsmc.com) May 16 is the current marker for the Japan unit because that is when Focus Taiwan reported the first-quarter profit. The next concrete milestone is the second Kumamoto fab, where TSMC has said 3-nanometer production is planned after construction and regulatory approvals already disclosed in February and March. (focustaiwan.tw 1) (focustaiwan.tw 2)