TSMC Arizona Fab Sales Cross 4% of Group Revenue as AI Orders Lift Q2 Results

Arizona site's share of group sales

Bank of America data shows TSMC's Arizona fab crossed 4% of the company's total sales in the second quarter of 2026, with the site recording more than NT$40 billion in quarterly revenue. The figure marks the Arizona operation's highest revenue contribution to date, building on an upward trajectory since the fab first turned a profit in the first quarter of 2025. The report attributed the growth to AI-related orders placed by NVIDIA and to Apple's continued role as one of the site's first customers.

Profit share lags revenue gains

Despite the rise in revenue, Arizona's contribution to group profit slipped below 3% in the quarter, sitting under NT$19 billion even as the overall revenue share grew. Bank of America figures show Arizona accounted for 1% of group profit in Q2 2025 and roughly similar shares for revenue in that period, before peaking at above 3% for both metrics in Q1 2026. The second-quarter gap between revenue and profit shares suggests cost pressures persist for the US-built fab, even as order volumes climb.

Production pipeline and chip mix

Phase 1 of the Arizona campus, which uses 4-nanometer process technology, is the only section currently operational and is reported to be manufacturing AI GPUs for NVIDIA. Phases 2 and 3, which will move to 3-nanometer and then 2-nanometer and 1.6-nanometer technologies, remain under construction alongside the site's first packaging facility. Because TSMC's high-end packaging capacity is still centered in Taiwan, chips produced in Arizona are currently flown back to the island for the final production step.

Q2 group performance context

TSMC's overall revenue reached NT$1.2 trillion in the second quarter, marking 36% annual growth for the group. The Bank of America figures track the same quarter in which TSMC reported a net income of NT$706.56 billion, a 77% year-on-year surge that the company said was driven by demand for advanced nodes including 5-nanometer and 3-nanometer processes. The group is also advancing a separate $100 billion Arizona investment plan covering additional logic wafer fabs for 2-nanometer technology and advanced packaging facilities.

What remains uncertain

Bank of America's numbers suggest Arizona's revenue share can grow faster than its profit share, a pattern analysts have linked to higher US construction and operating costs. It is not clear from the data when Phase 2's 3-nanometer output or the planned on-site packaging facility will begin commercial production, or how those milestones would alter the revenue-profit gap. The next verifiable measurement point is TSMC's third-quarter earnings release, which will show whether Arizona's contribution to both sales and profit recovers toward the Q1 highs.