Taiwan Semiconductor Manufacturing Company is weighing an investment in Texas that would expand its chip production capacity in the United States, Reuters reports.

The report identifies a potential new phase in the world's largest contract chipmaker's American buildout. TSMC already operates a major manufacturing site in Arizona, where it has committed to multiple fabrication plants. A Texas expansion would extend the company's domestic production footprint beyond that flagship project.

Reuters did not specify the size of the prospective investment, the location of the facility under consideration, or a timeline for a final decision, according to the report as circulated by Investing.com. TSMC has not issued a public confirmation of the plans.

Why Texas

Texas has positioned itself as a contender for advanced semiconductor manufacturing. The state hosts Samsung Electronics' semiconductor complex in Austin and a large Samsung fab project in Taylor. Texas Instruments runs substantial wafer operations in the Dallas area. A skilled workforce, available land, and state-level incentive programs have made the state a recurring candidate when chipmakers evaluate new U.S. sites.

For TSMC, a second U.S. state would diversify its American operations geographically. The company's Arizona site has faced construction schedule adjustments and staffing disputes in earlier phases, issues the company has worked through with U.S. government involvement.

The Policy Backdrop

The potential Texas investment lands in a policy environment shaped by the CHIPS and Science Act, which allocated roughly $52 billion in subsidies for domestic semiconductor manufacturing. TSMC's Arizona project secured federal support under that program, alongside awards to Intel, Samsung, Micron, and GlobalFoundries.

Washington has continued to press for expanded onshore capacity across leading-edge logic, memory, and packaging. A TSMC decision to add production in Texas would align with that push and would add a second leading-edge manufacturing hub for the company on U.S. soil.

Market Context

TSMC manufactures the advanced processors used by Apple, Nvidia, AMD, and Qualcomm, among others. Demand for AI accelerators has tightened capacity at the leading edge, pushing the company to expand globally. Beyond Arizona, TSMC is building in Japan — where its first Kumamoto fab has entered operation — and in Dresden, Germany, through its European joint venture.

Any new U.S. capacity would serve customers seeking supply-chain resilience. Large chip buyers have pressed suppliers to diversify manufacturing away from Taiwan, where the bulk of TSMC's leading-edge output remains concentrated.

What Remains Unconfirmed

The report describes the Texas plan as under consideration, not approved. Key parameters — capital expenditure, process technology, fab count, and construction timing — remain undisclosed. TSMC typically details major investment decisions through formal board approvals and investor announcements.

Die Signal will track the story as TSMC, Texas officials, or federal agencies provide confirmation and specifics.