According to news out of Taiwan, TSMC has had higher profits during the first quarter of this year, compared to all of 2025 from Fab 21 in Arizona. TSMC Arizona's profit in 2025 was NT$16.14 billion (around US$510 million) and for Q1 of this year NT$18.8 billion (around US$595 million). In Q1 of 2025 the same fab only had a profit of NT$496 million or US$15.6 million and the good news for TSMC doesn't stop here.

Its joint venture in Kumamoto, Japan—JASM—has also posted its first profit, admittedly at a much more modest NT$951 million (around US$30 million), but considering the fab had been making a loss of NT$3.25 billion (around US$103 million) in Q1 2025, TSMC seems to be on the up and up across the board. TSMC holds a 77 percent stake in JASM with Sony, Denso and Toyota being minority owners. Both Fab 21 in Arizona and Fab 23 in Kumamoto are under expansion with both set to start operation sometime in 2027, while the Fab 21 will see further expansions added this year with an unknown production start for the time being.

Semiconductor industry insiders reckon that TSMC leadership has revised its production strategies for a Japan-based fabrication site. The Taiwanese foundry business owns a majority stake in Japan Advanced Semiconductor Manufacturing (JASM). This partnership lead to a "Fab 23 phase 1" plant coming online a year ago, in the Kumamoto Prefecture. This factory is tasked with producing past-gen-sized wafers; at best on a 12 nm process node. A neighboring "phase 2" foundry is still under construction, but fresh inside track info proposes that certain activities have been put on hold. Initially, the "Fab 23 phase 2" (also known as "JASM phase 2") was categorized as a 6 nm and 7 nm chip production specialist, with building work expected to end by 2027. Rumors from late 2023 indicated company bigwigs "mulling" over a jump up to an N4 process. This year's surging demand for AI-grade hardware has reportedly prompted another reassessment of JASM production outlooks.

Nikkei Asia alleges that TSMC is "considering using its second plant in Japan to make more advanced chips than originally planned." According to publication's unnamed sources, the still in-progress phase 2 site could take on the challenge of dealing in N4 and N5. Lately, demand for 6 nm and 7 nm products has diminished. Tom's Hardware has looked into the latest claims, their resultant report highlights a major pause of construction: "one interesting thing to note about TSMC's Fab 23 phase 2 is that while it entered the early phase of physical build-out in late October (according to Nikkei), photos taken at the site in November showed cranes, excavators, and piledrivers on site. However, images captured in early December reveal that nearly all heavy equipment has since been removed. Also, suppliers were notified that work would pause, although no reasons were provided." Additionally, Nikkei's insiders claim that new equipment orders are on hold—the two Japanese sites will not require any additional tools "throughout 2026."

The EUV lithography machine from ASML ordered by Rapidus is expected to arrive in Japan in mid-December, according to information from Nikkei cited by TrendForce. This marks the first deployment of EUV technology in Japan, an important step for the country's semiconductor industry as it seeks to establish itself as a major player. Rapidus is currently building a factory in Chitose, Hokkaido, and plans to start mass production of 2 nm chips in 2027. The company also plans to purchase several EUV devices if the 2-nanometer chip production is successful, and intends to build a second production facility specifically for 1.4 nm chips. To support these operations, ASML will establish a service center in Chitose City.

NVIDIA CEO Jensen Huang hinted at the possibility of outsourcing AI chip production to Rapidus. As of October, construction progress on the Rapidus facility, which began in September 2023, is up to 63% and remains on track. In addition to Rapidus, Micron's Hiroshima plant is scheduled to install EUV equipment in 2025, allowing for mass production in 2026. JASM, a TSMC subsidiary in Japan, plans to integrate EUV lithography with a second wafer plant in 2027 that will have a 6 nm production line.

On June 5th, Vanguard and NXP announced plans to jointly establish VisionPower Semiconductor Manufacturing Company (VSMC) in Singapore to build a 12-inch wafer plant. TrendForce posits that this move reflects the trend of global supply chains shifting "Out of China, Out of Taiwan"(OOC/OOT), with Taiwanese companies accelerating their overseas expansion to improve regional capacity flexibility and competitiveness.

TrendForce noted that the semiconductor supply chain has been diversifying over the past two years to mitigate geopolitical and pandemic-related risks, forming two major segments: China's domestic supply chain and a non-China supply chain. Recent US tariff increases have accelerated this shift, leading to increased orders from American customers.

Taiwan Semiconductor Manufacturing Company (TSMC) is set to open its new semiconductor fabrication plant in Kumamoto Prefecture, Japan, on February 24. This facility, known as Japan Advanced Semiconductor Manufacturing (JASM), represents a significant milestone for Japan's semiconductor industry. JASM spans 52 hectares and is designed to produce mature 40, 22/28, and 12/16 nm fabrication technologies in the Fab 1. The Fab 1 has an initial monthly capacity of 40,000 300 mm wafers, scalable to 50,000 wafers per month in the near term. However, TSMC is set to expand the Kumamoto facility with Fab 2, which will produce 7 nm and 6 nm nodes and is scheduled to begin operations at the end of the 2027 calendar year. The Japanese government is set to subsidize the Fab 2 expansion with around $5 billion in aid. Combining Fab 1 and Fab 2, the JASM Kumamoto facility could produce 100,000 300 mm wafers per month once the production of Fab 2 starts. According to market research firm TrendForce, JASM provides significant additional capacity for TSMC amid a global chip shortage. It also boosts Japan's domestic chipmaking capabilities, reducing reliance on imports.

JASM is the first brand-new foreign-operated fab built in Japan. The Japanese government provided grants and tax breaks to incentivize Kumamoto Fab 1 construction as part of a national strategy to re-shore more semiconductor production and is now doing it again with Fab 2. TSMC also received subsidies from customers like Sony, SSS, DENSO and Toyota. Dr. CC Wei, CEO of TSMC, stated that JASM will "shape Japan's semiconductor landscape over the next decade." TrendForce analysts echo this sentiment, noting that JASM's advanced nodes will enable cutting-edge chip designs from Japanese automotive and consumer electronics brands. The inauguration ceremony on February 24 will be attended by TSMC partners, customers, and government representatives. JASM is expected to ramp up production over the coming year. TSMC has other non-Taiwan investments, like the facility in construction in Phoenix, Arizona, which will start mass production of chips by the end of 2027 or early 2028. At that point, the global semiconductor capacity constraints will ease significantly.