TSMC Reportedly Evaluating Texas for New Chipmaking Investment

Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker, is evaluating a potential investment in Texas to expand its U.S. production capacity, two sources familiar with the matter told Reuters. The plans have not been finalized and were first reported by Taiwanese media citing unnamed industry sources.

Potential Texas Expansion

According to the sources, who spoke on the condition of anonymity, the potential investment in Texas would be in addition to the company's existing projects. The evaluation represents another step in TSMC's strategy to geographically diversify its advanced manufacturing operations.

TSMC has not publicly confirmed the plans and did not immediately respond to a request for comment on the matter.

Context of US Investment

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This development follows TSMC's significant and ongoing investment in Arizona. The company has already committed $265 billion to build a major semiconductor manufacturing hub in the state. This figure includes a $100 billion expansion that was announced in July.

Company executives have previously signaled intentions for further U.S. growth. In July, Chief Executive C.C. Wei stated that "probably additional four or more fabs will be built," referring to both chip fabrication and advanced packaging facilities. Chief Financial Officer Wendell Huang also told Reuters that month that the company would continue to invest in the United States.

Strategic Importance

The Arizona campus is planned to be a comprehensive site, ultimately comprising 12 fabrication and advanced packaging facilities as well as a research and development center. A potential second U.S. site in Texas would underscore the strategic importance of the American market and supply chain resilience for the world's leading chip manufacturer amid ongoing geopolitical considerations.