According to Taiwan Electric's merger financial report in the first half of 2025, its Arizona crystal factory (TSMC Arizona) officially turned into profit after earning two consecutive quarters of profits in the first half of 2025, symbolizing that its manufacturing layout in the United States has successfully reached a steady pace.
TSMC Arizona's pure profit after tax in the second quarter of 2025 was NT$4.232 billion, and its cumulative pure profit after tax in the first half of the year reached NT$4.728 billion. The parent company NT$6.447 billion in investment income for the second quarter. Although Arizona Grinding Factory's pure after tax in the second quarter, only 1.62% of Taiwan Electric's pure after tax in the second quarter, it is still a key milestone for Taiwan Electric's since its announcement of investment expansion in the United States in 2020.
Taiwan Power said in response that according to Taiwan's merger financial report in the first half of 2025, TSMC Arizona has begun to bring positive contributions to Taiwan's acquisition. However, the company's profits are affected by multiple factors, including energy utilization, depreciation and continuous capital investment, etc. We will explain them in detail at the appropriate time.
At present, TSMC Arizona's positive contribution to the company's business is mainly due to strong market demand and high energy utilization. However, as we said in the July Legal Conference, in the next five years starting in 2025, overseas crystalline factory production will lead to a sparse gross profit margin, with the initial impact of about 2~3% per year, and will expand to 3~4% in the later stage. We will continue to expand our scale in Arizona and work to improve our cost structure, and will continue to work closely with our customers and supplier partners to control related impacts.
Market analysis, TSMC Arizona can turn to profit, and it is crucial that the first crystal factory will enter the production stage in 2024 and start large-scale delivery in the fourth quarter. In addition, as orders continued to increase in the first half of 2025 and yields continued to increase, it also provided dynamic energy for the operation of this factory.