TSMC Plans Second Semiconductor Campus in Texas with Significant Investment

Taiwan Semiconductor Manufacturing Company (TSMC) is reportedly planning to establish a second semiconductor manufacturing campus in Dallas, Texas, following its significant investment in Arizona. Sources from the semiconductor equipment industry indicate that TSMC may build six advanced wafer fabrication plants in Texas, with the total investment expected to surpass the $265 billion allocated for its Arizona facility.

The expansion into Texas is seen as a strategic move to enhance TSMC's manufacturing capabilities in the United States, driven by customer demands from major companies such as NVIDIA, Intel, AMD, and Apple. U.S. customers accounted for approximately 75.64% of TSMC's revenue in the first half of 2026. The company is also responding to pressures from the U.S. government, which has indicated that chip manufacturers may face tariffs of up to 200% if they do not relocate production to the U.S.

While the Arizona facility is facing challenges such as water and power shortages, as well as labor constraints, Texas is viewed as an attractive alternative due to its available talent pool, lower tax burdens, and stable electricity supply. The region, known as the 'Silicon Prairie,' is already home to factories from major companies like Texas Instruments and Samsung, making it a suitable location for TSMC's expansion. As of September 28, TSMC has not confirmed these plans, and supply chain operators report that site evaluations are ongoing.

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Source: KLEA News