Taiwan mobile chip developer MediaTek is in talks with Taiwan Semiconductor Manufacturing Co TSM to produce some of its chips on U.S. soil, Nikkei Asis reported on Monday.
Taiwan Semiconductor posted its first profit from its Arizona subsidiary in 2025, marking a turnaround four years after operations began despite intense competition from Samsung SSNLF and Intel INTC.
The Arizona unit generated 4.52 billion New Taiwanese dollars ($150.1 million) in net profit in the first half of the year, reversing a 4.34 billion New Taiwanese dollars loss a year earlier, driven by strong demand and higher factory utilization.
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Arizona’s clients included Apple AAPL, Nvidia NVDA, and Advanced Micro Devices AMD. The first facility, which began mass production in late 2023, uses 4-nanometer process technology, while a second fab is preparing to ramp up 3-nm chip production.
Taiwan Semiconductor continues to expand aggressively in the U.S. with plans for four additional fabs and mass 2-nm production by 2028.
Last week, Taiwan Semiconductor enabled veteran partner MediaTek to adopt its cutting-edge 2-nm process for a next-generation flagship system-on-a-chip (SoC).
Taiwan Semiconductor will begin mass production of the chip in the second half of 2025. It expects a market launch by late 2026. The chip’s official name is not yet known. However, industry analysts believe it could debut as the Dimensity 9600, MediaTek’s next flagship mobile processor.
The broader industry impact is significant. Apple will likely use Taiwan Semiconductor’s 2-nm technology for its iPhone 18 with the A20 chip. Intel, Advanced Micro Devices AMD, and Nvidia are also lining up to tap into the process for future products.
Taiwan Semiconductor’s stock reflects its strong momentum, climbing more than 34% year-to-date compared with the over 25% return.
Price Action: TSM stock is trading higher by 0.52% to $266.24 premarket at last check Monday.
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