Core Insights - The article discusses the significant investments by TSMC in the United States, with expectations of exceeding $200 billion and creating 30,000 jobs [2][4]. - It highlights the criticism of the Biden administration's chip subsidy effectiveness, where $6 billion in subsidies resulted in $60 billion in factory investments, deemed inadequate [4]. Investment and Expansion - TSMC plans to increase its investment in the U.S. to $1,600 billion, in addition to the existing $650 billion investment [4]. - The total investment in the U.S. is projected to reach $1,650 billion, including the construction of two advanced packaging plants and a research center [4]. Production Challenges - TSMC faces challenges in building chip factories in the U.S., including high costs, a shortage of qualified factories, and cultural differences in the workplace [4]. - The profitability of TSMC's U.S. subsidiary has significantly declined, with Q3 earnings dropping to 0.41 million New Taiwan dollars, a 99% decrease from Q2 [4].

Core Viewpoint - TSMC's investment plans in the U.S. have become increasingly complex, with U.S. Secretary of Commerce Gina Raimondo stating that TSMC's previous commitments are insufficient, now requiring a minimum investment of $200 billion and the creation of 30,000 jobs [1][4]. Group 1: Investment and Financial Implications - The starting point of this negotiation was the CHIPS Act signed during the Biden administration, which provided TSMC with $6 billion in subsidies, but only resulted in an initial investment of approximately $60 billion for factory construction, which Raimondo deemed inadequate [4]. - TSMC has since raised its planned investment to $165 billion, but U.S. expectations have now increased to $200 billion, which is a reduced target from earlier internal expectations exceeding $300 billion [4]. - TSMC's U.S. subsidiary reported a significant drop in profits, with earnings of only NT$41 million in Q3 2025, down 99% from NT$4.223 billion in Q2, reflecting the financial pressures and challenges faced in the U.S. market [6]. Group 2: Technological and Operational Challenges - TSMC is facing multiple challenges in the U.S., including high costs, talent shortages, and cultural conflicts, which have directly impacted its financial performance [5]. - The advanced process and packaging technologies, previously considered core assets, are gradually being transferred to the U.S., with TSMC's Arizona facility already producing 4nm chips and plans for 3nm and 2nm processes in the future [4].

Group 1 - TSMC reported a net profit of NT$398.27 billion (approximately RMB 94.78 billion) for Q2 2025, with its Arizona factory contributing NT$6.447 billion (approximately RMB 1.534 billion) in investment income after four years of losses [1] - The Arizona factory had accumulated losses exceeding NT$39.4 billion over the past four years, with losses of NT$4.976 billion and NT$4.979 billion in Q3 and Q4 of 2024, respectively [1] - Despite the contribution from the Arizona factory, it only accounted for 1.62% of TSMC's total net profit for Q2 [1] Group 2 - TSMC announced a total investment of $65 billion for three advanced chip factories in the U.S., followed by an additional $100 billion for three more advanced chip factories, two advanced packaging plants, and a research center [2] - The P1 factory began production in Q4 of last year, while the P2 factory is expected to start equipment installation in Q3 of next year and begin mass production in 2027 [2] Group 3 - TSMC's subsidiary in Japan, JASM, continues to operate at a loss, with losses reported at NT$11.19 billion, NT$11.87 billion, NT$32.49 billion, and NT$29.73 billion over recent quarters [4] - The low capacity utilization rate of approximately 50% at JASM's first wafer fab is attributed to intense competition in mature process nodes [4] - The slow recovery in the automotive and consumer markets is cited as a reason for the delayed construction of JASM's second factory [4] Group 4 - TSMC's Arizona factory has achieved a monthly production capacity of approximately 34,000 wafers for 4nm chips, fully booked by clients such as Apple and AMD [5] - The profitability of the Arizona factory is contingent on capacity utilization and product margins, with TSMC indicating that overseas factory mass production will dilute margins by 2-3% annually in the initial years, increasing to 3-4% later [5] Group 5 - U.S. government officials have expressed concerns about the return on investment from subsidies provided to semiconductor manufacturers, including TSMC [6] - The U.S. government is considering acquiring equity stakes in companies like TSMC as part of the Chip Act funding [6][7] - There is a push from U.S. officials to relocate some chip manufacturing back to the U.S. for national security reasons [7]

Core Viewpoint - The article provides an overview of TSMC's wafer fabrication capacity across various fabs, highlighting the production capabilities and expected changes in output for the upcoming quarters. Group 1: TSMC's Fab Capacity Overview - TSMC operates a total of 17 fabs located in Hsinchu, Tainan, Shanghai, Nanjing, Kaohsiung, Washington, and Arizona [2][4]. - The data presented in the article is measured in KWPM, indicating the monthly capacity in thousands of wafers [3]. Group 2: Hsinchu Fabs - Hsinchu has the highest number of fabs, totaling seven, with capacities of 30, 60, 41, 93, 135, and 3 KWPM for the respective fabs [4]. - It is expected that the production capacity will remain stable in the latter half of the year, with Fab 20 showing a slightly higher increase [4]. Group 3: Tainan Fabs - Tainan houses three fabs: Fab 6 (8-inch), Fab 14 (12-inch), and Fab 18 (12-inch), with capacities of 102, 338, and 242 KWPM respectively [5][6]. - A slight reduction in production is anticipated for Fab 6 and Fab 14, while Fab 18's capacity is expected to increase [5]. Group 4: Shanghai Fab - Shanghai has one fab, Fab 10, with a monthly capacity of 105 KWPM, which is expected to remain relatively stable in the upcoming quarters [7][8]. Group 5: Washington Fab - Washington has one 8-inch fab, Fab 11, with a capacity fluctuating between 23 and 30 KWPM [9][10]. Group 6: Taichung Fab - Taichung has one 12-inch fab, Fab 15, with a first-quarter capacity of 287 KWPM, which is expected to experience slight fluctuations [11][12]. Group 7: Nanjing Fab - Nanjing has one 12-inch fab, Fab 16, which is focused on mature processes (28nm and above) [13][14]. Group 8: Arizona Fab - Fab 21 in Arizona is under construction, with production of 4nm chips expected to begin by the end of 2024, indicating currently low capacity [15][16]. Group 9: Kaohsiung Fab - Fab 22 in Kaohsiung is planned for 2nm processes, with multiple phases of construction; currently, the capacity is at zero [17].