Taiwan Semiconductor Manufacturing Company (TSMC) is evaluating a potential second major industrial footprint in the United States, centred around a multi-billion-dollar project in Texas that would add to its existing operations in Arizona, according to reporting from Taiwan’s Economic Daily News (UDN) and confirmation from Reuters sources.
Proposed Texas Semiconductor Campus Details
The proposed development in Texas involves a distinct campus featuring six advanced semiconductor production facilities. Industry sources specializing in chip-making equipment point to Dallas as the most probable location for the multi-plant hub.
Economic Daily News estimates that the investment could surpass the billions already committed to TSMC’s Arizona expansion. The planned Texas installations are expected to utilize even more advanced etching processes than earlier phases. However, TSMC officials declined to comment on the reports when they were initially published.
Reuters subsequently confirmed that TSMC is reviewing a potential investment in Texas, citing two people close to the matter who spoke on condition of anonymity. Those sources emphasize that the plans remain exploratory, have not been approved by the company’s board of directors, and have not yet triggered formal procurement preparations among equipment suppliers.
Rising US Demand and Tariff Pressures
Major American technology firms, including NVIDIA, Intel, AMD, and Apple, want secure domestic access to advanced silicon produced directly inside the United States. This commercial demand aligns with recent tariff threats from the incoming Trump administration, which has floated potential import duties of up to 200% on semiconductor manufacturers that do not produce chips on American soil.
Despite these commercial and political pressures, the Texas initiative remains at a preliminary stage. TSMC has not asked its supply chain to prepare for construction, and the project lacks formal board validation.
Arizona Expansion Challenges and Timelines
The new deliberations follow ongoing logistical hurdles at TSMC’s primary US site in Arizona, where the company expanded its funding commitment by an additional sum in July. The Arizona project has faced persistent constraints regarding local labor supply, electrical power availability, and secured water resources.
While establishing a footprint in Texas would broaden TSMC’s geographic diversification and place manufacturing capacity closer to key corporate buyers, building six advanced fabrication plants is a multi-year undertaking. Constructing the facilities, qualifying complex equipment, and achieving volume production means commercial output from a Texas site cannot be expected in the near term.