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Taiwan Semiconductor Manufacturing Co.'s (TSMC) landmark investment project in Arizona moved forward with better-than-expected operational results even as the chipmaker navigated persistent hurdles involving water scarcity and labour availability.
According to a report by Focus Taiwan, National Development Council (NDC) head Yeh Chun-hsien detailed the project's status on Monday following an inspection of the Arizona hub and his participation in the SelectUSA Investment Summit in Maryland. The Arizona production site generated a profit of NT$16.14 billion, or approximately USD 514 million, in 2025 during its first full year of mass production. This financial milestone followed the successful launch of the facility's first fab, which began commercial operations in the final quarter of 2024. While the initial phase showed strong performance, the company continued to manage the logistical complexities of a massive overseas expansion. "TSMC told me it was surprised by the smooth trial run of the first fab, which has left the company optimistic about the project's outlook," the report quoted Yeh. Construction of a second fab reached completion, with mass production scheduled to commence in the second half of 2027. Furthermore, work on a third fab began earlier this year as part of the company's long-term commitment to the region. These three facilities formed the core of TSMC's initial USD 65 billion investment, though the company recently signaled an intention to expand its presence further. TSMC previously announced an additional USD 100 billion investment plan aimed at constructing three more fabs, two integrated circuit assembly facilities, and a research and development center in the state. While the chipmaker secured a large parcel of land near its existing facilities to accommodate this future growth, it did not provide a specific timetable for the start of those new projects. According to the report, Yeh said Arizona's dry climate has made securing sufficient water resources a major concern for TSMC, which hopes to receive support from the Arizona state government. In past, including in April 2023, TSMC has tried to allay fears that water would be a problem, saying it had plans for comprehensive water treatment and recycling facilities in Arizona that would meet the needs of its advanced wafer fabs. TSMC is also seeking to ensure a stable power supply for its Arizona facilities, Yeh said, and it also faces complex state environmental and electricity consumption regulations. In addition, the company has also had trouble obtaining visas for overseas hires as labour shortages remain another concern, Yeh said, without going into further detail about any of the specific issues. Meanwhile, Yeh said TSMC is hoping Taiwanese upstream suppliers of semiconductor chemicals and equipment will follow it to the United States, though such investments would require regulatory revisions. (ANI)
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