TLDR
- TSMC is reportedly weighing a new manufacturing hub in Texas, separate from its Arizona projects.
- The move would add to the $265 billion the company has already pledged to US investment.
- TSM shares dipped 0.6% in premarket trading Wednesday.
- A Texas plant could help TSMC sidestep potential US tariffs on chip imports.
- TSMC’s Arizona footprint already includes 12 planned facilities plus an R&D center.
Taiwan Semiconductor Manufacturing (TSM) is reportedly considering a new chip plant in Texas. The stock slipped 0.6% in premarket trading Wednesday following the news.
Taiwan Semiconductor Manufacturing Company Limited, TSM
Two sources told Reuters that TSMC is evaluating the investment. Nothing has been finalized yet.
Taiwanese media first reported the story earlier this week, citing unnamed industry sources. TSMC has not responded to requests for comment.
Any Texas project would sit on top of the $265 billion TSMC has already promised to spend in the US. Most of that money is going toward expanding its Arizona operations.
What’s Already Planned in Arizona
TSMC’s Arizona buildout is already massive. The site is set to include 12 fabrication and advanced packaging facilities, plus a dedicated R&D center.
CEO C.C. Wei said in July that the company expects to build “four or more” additional fabs there. That came alongside a fresh $100 billion pledge, on top of what was already committed.
CFO Wendell Huang told Reuters back in July that the company plans to keep investing in the US. A Texas hub would fit that pattern, just in a new state.
TSMC hasn’t said what a Texas plant would cost or when construction might start. For now, it’s still just a possibility being weighed internally.
Why Texas Could Make Sense
There are a few practical reasons a second US hub could appeal to TSMC. Tariffs are one of them.
President Trump has floated tariffs as high as 200% on chip imports. A US-based plant would sidestep that risk entirely.
Intel is another factor. The company is expanding its own chipmaking capacity and currently pays TSMC to produce some of its wafers, so a Texas facility could help TSMC keep pace if Intel starts pulling more work in-house.
Geopolitics also plays a role. China’s stance on Taiwan remains a constant risk for any company headquartered there.
TSMC has said it wants to diversify where its advanced chips get made. Spreading production across more US states would be one way to do that.
Expanding into Texas wouldn’t come cheap, though. TSMC already raised its 2026 capital spending forecast to a range of $60 billion to $64 billion.
The company has noted that US fabs cost more to build and run than facilities back home. A second American site would likely push those numbers higher still.
Barron’s reached out to TSMC for comment on the Texas plans but had not received a response as of Wednesday morning. Reuters also said the company did not immediately reply to its request for comment.
TSM’s American depositary receipts were down 0.6% in Wednesday’s premarket session, according to Barron’s.
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