TSMC weighs Texas chip campus beyond Arizona plans

TSMC is evaluating a potential Texas manufacturing investment separate from its Arizona expansion, according to reports from Taiwan’s Economic Daily News and Reuters. Economic Daily News said the project could include six advanced fabs, with Dallas the most likely location, while Reuters reported that plans remain unfinished and would come on top of the existing Arizona commitment.

The potential expansion is being driven by demand from customers including NVIDIA, Intel, AMD, and Apple for US-made chips, along with the Trump administration’s renewed tariff threat of up to 200% for chipmakers that do not manufacture in the US. TSMC reportedly has not asked suppliers to prepare, and its board has not approved the project. The Arizona site is still facing power and labor shortages while addressing its water supply, and any Texas fabs would take years to build.