TSMC is reportedly scouting a second major U.S. chipmaking hub near Dallas, Texas, on top of its existing Arizona buildout. The move would add several advanced wafer fabs and spread the company's production further beyond Taiwan.
Taiwan Semiconductor Manufacturing Co., the contract chipmaker that makes processors for Nvidia, Apple, and AMD, is reportedly scouting a second U.S. manufacturing site. MarketWatch, citing a report from Taiwan's UDN, said the company is considering Dallas, Texas, for a second chipmaking hub alongside its current base in Phoenix, Arizona, citing unnamed sources in the semiconductor equipment industry.
A bigger footprint beyond Arizona
Crypto Briefing, citing Taiwan's Economic Daily News, reported the Texas expansion could add six advanced wafer fabrication plants. That would sit on top of TSMC's $265 billion commitment in Arizona, a figure that has grown sharply from the $12 billion TSMC first pledged for Arizona in 2020.
The Arizona buildout is already running. Fab 1 has been in 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 planned for later phases. TSMC aims to eventually house roughly 30% of its global 2 nm and smaller node capacity in Arizona once the expansion wraps up.
Why Texas, and why now
Demand for AI and high-performance computing chips is driving the push. Nvidia's data-center GPU business has grown as hyperscalers build out AI infrastructure, Apple keeps relying on TSMC for its custom M-series and A-series processors, and AMD has gained share against Intel in server chips.
There is also a geopolitical angle. Washington has pushed to reshore semiconductor manufacturing through the CHIPS Act and related incentives, and a second TSMC site in a different state would further spread supply-chain risk now concentrated in Taiwan.
Competitive pressure builds
The expansion would reshape competition in U.S. chipmaking. Intel is investing in foundry capacity in Ohio, Arizona, and Oregon but still trails TSMC in process technology, while Samsung's Taylor, Texas, fab, announced in 2021, has faced delays and cost overruns. A nearby TSMC campus would compete for the same labor and infrastructure.
Approximately 75.6% of TSMC's revenue in the first half of 2026 came from U.S. customers.
Sources: MarketWatch (snippet-based), Crypto Briefing
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