Chinese TSMC factories bring the highest profits, while the Japanese branch incurs losses

Brief overview of TSMC’s results for the past year

RegionNet profit/loss (million $)Key technologiesKey customersKumamoto, Japan – 309 (loss)3‑nm (planned) – Nanjing & Shanghai, China+1 24028–16 nm – Arizona, USA+5104‑nmNvidia, Apple, Google, MicrosoftGermany (ESMC) – 22 (loss)28–12 nm (plans for 5‑nm)—

What happened in Japan
TSMC and its Japanese partner created a joint venture in Kumamoto to bring advanced 3 nm chips to market. However, by the end of last year the plant recorded a loss of $309 million, almost twice as much as the previous year. Production is currently not profitable and only slows plans for deploying high‑technology products.

China – “heavy grandmaster” TSMC
The most profitable overseas sites remain the plants in Nanjing and Shanghai. Together they earned $1.24 billion in net profit, working on process nodes from 28 to 16 nm—already not cutting‑edge technology, but demand is high and equipment has long since paid off. In Nanjing about 20,000 silicon wafers are processed monthly on the 16‑ and 12‑nm lines, and in Shanghai up to 40,000 – roughly 3% of TSMC’s total production volume.

Success in the United States
The Arizona factory already produces 4‑nm chips. Last year it posted a net profit of $510 million, although the year before it finished with a small loss. The U.S. market accounts for 75% of the company’s revenue, but fully replacing imported supplies with domestic production has not yet been achieved – TSMC plans to expand its workforce and in 2027 launch 3‑nm chip production at the American site.

Germany: slow start
In Germany TSMC is developing a joint venture, ESMC, for automotive electronics. The auto industry is still not doing better, so the launch of local production is delayed. At present the plant has incurred a $22 million loss even before operations began. Production of chips from 28‑nm to 12‑nm is planned, and with customers it will also include 5‑nm and even finer processes. The 2027 start date remains uncertain.

Conclusion:

Chinese plants continue to generate profit, the U.S. site is already profitable, but Japan and Germany are still operating at a loss and awaiting customers or technological progress. TSMC continues to invest in expanding 3‑nm and higher production worldwide, but economic results remain mixed.