TSMC is reportedly evaluating Texas as the location for its next US manufacturing site, with the project tied to an Elon Musk-led facility, according to azcentral.com and The Arizona Republic.

The report names Texas as the leading candidate for the follow-on investment after the company's Arizona build-out. The prospective site is linked to a Musk-led manufacturing operation, extending the overlap between advanced chipmaking and Musk's industrial ventures.

Why Texas, and why now?

TSMC has already anchored its US expansion in Arizona, and the question of a second state has followed the Arizona project since its earliest phases. Texas, with its land availability, power infrastructure and existing semiconductor activity, has repeatedly surfaced in that discussion.

The new report places a specific Musk-linked manufacturing site at the center of the Texas scenario. That framing positions TSMC's potential Texas footprint not as a standalone copy of the Arizona fab campus, but as capacity placed next to a named customer's own industrial base.

In short: the decision point is no longer whether TSMC adds US capacity, but where and alongside whom.

What does this mean for Arizona?

Arizona remains the foundation of TSMC's American manufacturing. The reported Texas interest does not displace the Arizona campus; it follows it. For the Phoenix-area operations, the significance lies in sequencing: Arizona came first, and any Texas site would build on lessons, suppliers and workforce pipelines established there.

State and local officials in both regions have competed for semiconductor investment since the US government began pushing domestic chip production. A TSMC commitment in Texas would split that pipeline across two states.

The takeaway is straightforward: Arizona keeps its fabs, and Texas may get the next one.

The Musk factor

The report's most distinctive detail is the involvement of Elon Musk. Musk-led manufacturing has concentrated in facilities such as Tesla's gigafactories, and a TSMC-adjacent site tied to his operations would mark a notable coupling of leading-edge foundry capacity with a single industrialist's production network.

For TSMC, co-locating near a major customer's site would shorten supply lines for advanced chips destined for automotive, AI and robotics applications. For Musk-linked operations, it would place a leading-edge foundry within reach of domestic assembly.

No investment amount, site location or construction timeline appears in the report, and TSMC has not confirmed the plan. Readers should treat the Texas scenario as reported interest, not an announced project.

What happens next?

Watch for three signals: any TSMC statement on US expansion beyond Arizona, land or incentive moves by Texas authorities, and confirmation of the Musk-linked site's purpose. Until one of those lands, the Texas option remains a reported lead rather than a commitment.

For now, the story line is this: after Arizona, TSMC's next US address may sit in Texas — next to Elon Musk.