TAIPEI (Taiwan News) — TSMC is reportedly considering Texas for a second US chipmaking hub, with investment potentially exceeding the NT$8.42 trillion (US$265 billion) planned for its Arizona operations.
Dallas is reportedly a leading candidate for the proposed campus, per UDN. The report said the expansion could create a semiconductor corridor linking TSMC’s Arizona wafer manufacturing operations with Texas’ advanced technology ecosystem.
Rumors of a proposed Texas plant have circulated in the semiconductor industry, with several unnamed supply-chain companies privately confirming that they had heard industry peers discuss the possibility. They said TSMC had not contacted suppliers about the project.
TSMC’s overseas expansion aims to bring production closer to major customers, reduce geopolitical risks, and address land, water, and electricity constraints in Taiwan. US customers accounted for approximately 75.64% of TSMC’s revenue in the first half of 2026, according to UDN, making proximity to the US market and reduced exposure to potential tariffs important considerations.
Industry sources told UDN that TSMC is considering the Texas campus partly in response to demand from major customers, including Nvidia, Intel, Advanced Micro Devices, and Apple, for domestic chip production. The report also cited US President Donald Trump’s warnings that chipmakers could face tariffs of up to 200% if they do not move manufacturing to the US.
North Texas, known as “Silicon Prairie,” has an established semiconductor manufacturing base, silicon wafer supply chain, optical communications industry, and defense sector. Companies including Texas Instruments, Coherent, Samsung, and Tesla have operations in the region, potentially creating an industrial cluster around a new TSMC campus and supporting Washington’s efforts to localize semiconductor supply chains.
Texas could also offer advantages over Arizona, where TSMC faces challenges related to water, electricity, and labor availability. Industry sources cited by UDN said Texas has a larger available workforce, lower taxes, and a stable power supply.
Supply-chain sources said they believed the site evaluation was nearing its final stages, though TSMC’s board had not made a final decision.
