TSMC Is Evaluating a Second U.S. Site in Texas

Six New Fabs Outside of Arizona? TSMC Is Evaluating a Second U.S. Site in Texas

2026-10-02 By Sebastian Gerstl | Translated by AI 2 min Reading Time

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According to several reports, TSMC is considering another U.S. location. Up to six new chip factories could be built in the Dallas metropolitan area in the state of Texas.

TSMC's U.S. headquarters in Arizona: According to various media reports, the world's largest contract semiconductor manufacturer may be planning to build up to six additional fabs in the state of Texas.(Image: TSMC) — TSMC's U.S. headquarters in Arizona: According to various media reports, the world's largest contract semiconductor manufacturer may be planning to build up to six additional fabs in the state of Texas.
(Image: TSMC)

Taiwanese semiconductor foundry TSMC is considering another major investment in the U.S. In addition to its already extensively expanded facility in Arizona, a second manufacturing complex could be built in Texas. According to Reuters, two people familiar with the matter confirmed that TSMC is evaluating a potential investment in the state. However, the plans have not yet been finalized.

Taiwanese media had previously reported, citing sources in the semiconductor and supplier industries, that TSMC was considering building a second U.S. campus in the Dallas area, featuring up to six state-of-the-art chip factories. A final decision on the location has reportedly not yet been made. TSMC itself has not yet officially confirmed the reports.

Billions in Investments in the U.S.

In Arizona, TSMC has already committed to investments totaling $265 billion. According to current plans, twelve production and advanced packaging facilities, as well as a research and development center, are to be built there. The first phase of the expansion is already producing chips, and additional facilities are either under construction or planned for the coming years.

An additional facility in Texas could require a similarly high—or even higher—level of investment. Taiwanese industry reports suggest that more modern manufacturing processes could be used there in the future, the implementation of which is particularly capital-intensive. However, there are no specific details yet regarding the investment amount, timeline, or manufacturing technologies to be used.

Texas Offers a Well-Established Semiconductor Industry

One advantage for Texas is its existing semiconductor industry. Among others, Texas Instruments and Samsung operate large facilities in the state, and there is also a broad network of suppliers. The Dallas metropolitan area is therefore considered an established technology hub. Comparatively low taxes, readily available energy, and several universities offering semiconductor and engineering programs could make the location even more attractive.

In addition to proximity to key customers, geopolitical and trade-related factors are driving the expansion of U.S. manufacturing. U.S. companies account for a large portion of TSMC’s business, while potential tariffs are increasing pressure on manufacturers to build more capacity in the United States. Limited land availability as well as water and energy shortages in Taiwan are also factors in the company’s international expansion. Whether and to what extent TSMC will actually build a facility in Texas remains to be seen until the company makes an official decision.

Semiconductor scaling: TSMC's roadmap reveals a fundamental shift. Development is no longer solely determined by transistor density, but scaling is moving from the individual chip to the system level. (Image:TSMC)

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