Taiwan Semiconductor Japan Operations Return To ProfitTaiwan Semiconductor's Japan subsidiary, Japan Advanced Semiconductor Manufacturing Inc. (JASM), posted its first quarterly profit since beginning mass production at the end of 2024.The Kumamoto venture generated 951 million New Taiwan dollars in profit during the January-to-March quarter, the Taipei Times reported Monday.That compared with a loss of 1.39 billion New Taiwan dollars in the prior quarter and a loss of 3.25 billion New Taiwan dollars a year earlier.Analysts said improving utilization rates at the first Kumamoto fab drove the turnaround.The facility manufactures automotive and industrial chips using 12-nanometer, 16-nanometer, 22-nanometer and 28-nanometer technologies.Taiwan Semiconductor is also continuing construction on a second fab in Kumamoto as it expands its Japan footprint.AI Demand Fuels Global ExpansionTaiwan Semiconductor recently revised plans for its second Japan fab. The company upgraded the project from 6-nanometer production to advanced 3-nanometer manufacturing in response to accelerating global AI demand.In the U.S., Taiwan Semiconductor Arizona Corp. reported first-quarter profit of 18.81 billion New Taiwan dollars, up from 11.37 billion New Taiwan dollars in the previous quarter and 496 million New Taiwan dollars a year earlier.Analysts said AI demand from major U.S. customers boosted the Arizona operation.The first Arizona fab started mass production in late 2024 using 4-nanometer technology, while the second fab is expected to begin commercial 3-nanometer production next year.Advanced Packaging Expansion Supports AI InfrastructureAt the company's annual technology symposium, Deputy Co-Chief Operating Officer Kevin Zhang said AI could help push global semiconductor revenue to $1.5 trillion by 2030 after surpassing $1 trillion this year.Zhang said AI and high-performance computing could contribute about 55% of semiconductor revenue by 2030, overtaking smartphones as the industry's main growth driver.To support that demand, Vice President B.Z. Tien said Taiwan Semiconductor is ramping 2-nanometer production across five factories in Hsinchu and Kaohsiung while expanding Chip-on-Wafer-on-Substrate, or CoWoS, advanced packaging capacity at a 90% compound annual growth rate through next year.Vice President Lipen Yuan added that Taiwan Semiconductor improved CoWoS yields to 98% and is developing larger packaging technologies capable of supporting up to 64 high-bandwidth memory chips for future AI systems.Earnings And Analyst OutlookThe next major catalyst for the stock is expected to arrive with the company's July 16, 2026, earnings report.Analysts expect earnings of $3.66 per share, up from $2.47 per share a year earlier, on revenue of $39.76 billion, compared with $30.07 billion in the prior-year period.The stock trades at 34.7 times earnings, reflecting a premium valuation relative to peers.Wall Street maintains a consensus Buy rating on the shares with an average price forecast of $420.Recent analyst actions include: