Core Viewpoint - The article discusses the advancements in semiconductor technology, particularly focusing on the competition between companies like TSMC and Rapidus in developing cutting-edge processes such as 1nm and 1.4nm nodes [2][4]. Group 1: TSMC Developments - TSMC plans to deploy its 1.4nm and 1nm processes at the Fab 25 facility in Central Taiwan Science Park, with an estimated investment of approximately $49 billion [4]. - The first phase will include two fabs dedicated to 1.4nm technology, expected to start mass production in the second half of 2028, while the second phase will advance to 1nm technology [4]. - TSMC is rumored to be the first to use High-NA EUV lithography at the 1nm node, with development expected to be completed by 2030 and mass production to follow [4]. Group 2: Rapidus Initiatives - Rapidus, a joint venture established by eight Japanese companies, aims to localize advanced semiconductor design and manufacturing, with plans to develop 1.4nm technology starting this year and targeting mass production by 2029 [4]. - The company intends to narrow the technology gap with TSMC to about six months for the 1nm process, which suggests a potential mass production timeline between the second half of 2030 and 2031 [4]. - Rapidus has already constructed an innovative integrated manufacturing facility (IIM-1) in Chitose, Hokkaido, aiming for 2nm chip mass production by 2027, and plans to build a second fab in the fiscal year 2027 [4].

Core Viewpoint - The article highlights the significant advancements and investments made by TSMC in the semiconductor industry, particularly in the United States, and the implications for its profitability and market position [2][4]. Group 1: TSMC's Financial Performance - TSMC reported a substantial after-tax net profit of 398.27 billion NTD in Q2, marking a year-on-year increase of over 60%, with a net profit margin of 42.7% [2]. - The company's investment in U.S. chip factories is showing promising results, with an after-tax net profit of 4.23 billion NTD from U.S. operations, although this is a small fraction of the total profit [2]. Group 2: U.S. Investments and Production Capacity - TSMC's total investment in the U.S. is projected to reach 165 billion USD, which remains significant even after accounting for subsidies from the U.S. CHIPS Act [4]. - The first U.S. factory, producing 4nm chips, has commenced operations with full capacity booked by clients like Apple and AMD [4]. - The second factory, expected to produce 3nm chips, is under construction and is anticipated to begin operations in Q3 of the following year [4]. Group 3: Profitability Milestones - TSMC's Arizona wafer plant, after four years and nearly 40 billion NTD in cumulative losses, is expected to achieve an after-tax net profit of 4.23 billion NTD by Q2 2025, with a total profit of 4.73 billion NTD in the first half of that year [4]. - This milestone indicates a shift towards profitability for TSMC's advanced manufacturing setup in the U.S., contrasting with the ongoing losses at Japan's Kumamoto plant [4].