TSMC reportedly eyes massive second US chip-making site in Texas

TSMC, the Taiwanese foundry giant that manufactures chips for Nvidia, Apple, and AMD, is reportedly scouting a second major US manufacturing location in the Dallas, Texas area. The potential expansion would add six advanced wafer fabrication plants to its American footprint, layering on top of an already staggering $265 billion commitment in Arizona.

Taiwan’s Economic Daily News first reported the plans, citing supply-chain sources. If realized, the Texas hub would represent one of the largest single-company investments in US semiconductor manufacturing history, pushing TSMC’s total domestic spending well beyond what it has already pledged in the desert Southwest.

From $12 billion to $265 billion in six years

TSMC’s American ambitions have scaled up at a pace that makes most corporate expansion plans look quaint. The company initially announced a $12 billion investment in Arizona back in 2020. By July 2026, that figure had ballooned to $265 billion, encompassing multiple logic fabs, packaging facilities, and a dedicated research and development center.

The Arizona operation is already producing results. Fab 1 has been running volume production of 4 nm chips since late 2024. Fab 2 is on track for 3 nm production by late 2027, with 2 nm technology slated for subsequent phases.

TSMC’s target is to eventually house roughly 30% of its global 2 nm and smaller node capacity in Arizona once the full expansion wraps up.

Approximately 75.6% of TSMC’s revenue in the first half of 2026 came from US customers.

Why Texas, and why now

The timing aligns with surging demand for AI and high-performance computing silicon. Nvidia, TSMC’s highest-profile client, has seen its data center GPU business explode as hyperscalers race to build out AI infrastructure. Apple continues to rely on TSMC for its custom M-series and A-series processors. AMD’s server chip business has gained meaningful share against Intel.

There’s also the geopolitical dimension. Washington has spent the past several years pushing to reshore semiconductor manufacturing through the CHIPS Act and related incentives. A second TSMC site in a different state would further distribute the supply chain risk that has concentrated so heavily in Taiwan.

What this means for the semiconductor landscape

TSMC’s potential Texas expansion reshapes the competitive map for advanced chip manufacturing in the West. Intel has been investing heavily in its own foundry ambitions in Ohio, Arizona, and Oregon, but continues to trail TSMC in process technology. Samsung’s Taylor, Texas fab, announced in 2021, has faced delays and cost overruns. A TSMC campus nearby would put direct competitive pressure on Samsung’s American operations in the same labor and infrastructure market.