TSMC Evaluates Potential Texas Chipmaking Expansion
The chipmaker is weighing an expansion beyond Arizona, putting Texas in contention for a further U.S. manufacturing investment as demand for advanced semiconductors grows.
Taiwan Semiconductor Manufacturing Co. is considering a chipmaking investment in Texas that could extend its U.S. manufacturing expansion beyond Arizona and bring another major semiconductor development into the state’s industrial pipeline.
Reuters reported on September 30 that two people familiar with the discussions confirmed the evaluation was underway. A Texas investment would come in addition to TSMC’s planned $265 billion Arizona program, one of the people said. The company declined to comment, and the proposal has not been finalized.
The discussions place Texas in the frame for a company whose expansion is helping shape the physical infrastructure behind artificial intelligence. For the state’s construction industry, the significance would extend beyond a factory building to the utilities, specialist facilities and supplier capacity needed to support advanced chip production.
A wider U.S. manufacturing footprint
TSMC’s Arizona operation shows how its American manufacturing ambitions have grown. The company selected Phoenix in 2020 for an initial $12 billion investment. Its stated commitment has since reached $265 billion, with additional advanced wafer fabrication and packaging capacity announced in July 2026 to meet customer demand.
The first Arizona fab entered high-volume production in the fourth quarter of 2024. TSMC says its second is targeting production in the second half of 2027, while its third is expected to follow before the end of the decade. Initial construction on a fourth fab and the first advanced packaging facility began in early 2026.
That sequence illustrates the long development cycle behind semiconductor expansion: site preparation, building construction and production ramp-up take place in distinct phases. A Texas campus would add a new location to that growing U.S. footprint, although its scale and delivery sequence have yet to be disclosed.
Why Texas is in the discussion
Taiwan’s National Science and Technology Council minister, Wu Cheng-wen, has pointed to Texas’s existing semiconductor industrial base as a reason it could be considered. Speaking on September 29, following an August visit to the state, he said investment decisions would depend on customer needs and market opportunities.
Dallas has featured in reports about a possible second U.S. campus, but it has not been announced as TSMC’s chosen location. Wu said any Texas investment would need to be discussed, approved and publicly announced by the company’s board. The Taiwanese government would not make that announcement on its behalf.
His comments also placed the evaluation in a broader business context. Site selection involves the availability of land, water and electricity, alongside employees, customers and the supply chain. Those considerations would shape both the location and the supporting infrastructure required for a Texas development.
What it could mean for construction
A decision to proceed would give Texas builders and specialist suppliers a significant project to follow. TSMC’s Arizona program combines manufacturing, advanced packaging and research facilities, supported by substantial environmental and utility infrastructure. Its planned industrial water reclamation plant, for example, is intended to enable recycling of at least 90 percent of the operation’s water.
The Texas opportunity remains at the investment-evaluation stage. TSMC has not publicly set out a site, budget, building count, construction timetable or delivery team. The next material development would be a corporate commitment and a defined location, allowing the industry to assess what must be built, how it will be serviced and when construction could begin.