TSMC is evaluating Texas as the location for a second US chipmaking hub, Taiwan News reported. The Taiwanese foundry's reported interest in additional American capacity comes as its Arizona complex ramps production and federal incentives remain in force.

The Taiwan News report identified no investment figure, construction timeline, or specific Texas site. TSMC had not issued a public statement in materials available at publication time. The company did not respond to a standard request for comment before this article was filed.

What is TSMC's current US footprint?

TSMC's American operations center on three fabs under construction in Phoenix, Arizona. TSMC announced the first facility in May 2020, the second in December 2022, and a third in April 2025.

The initial Phoenix fab entered commercial production in late 2024 on the N4 (4-nanometer-class) process. The second fab targets N3 (3-nm) output, with the third fab planned for N2 or more advanced nodes. TSMC has expanded its Arizona investment repeatedly since 2020, with additional advanced packaging capacity added to the campus in 2024.

In November 2024, the US Department of Commerce finalised $6.6 billion in direct CHIPS and Science Act funding for TSMC Arizona, alongside up to $5 billion in loan capacity and a 25% Investment Tax Credit on qualifying capital expenditure.

Why Texas specifically?

Texas already hosts a sizable semiconductor cluster. Samsung operates foundry lines in Austin, and Texas Instruments runs 300-mm fabs in Richardson while building new capacity in Sherman, roughly 65 miles north of Dallas.

State-level incentives and power-grid capacity also shape site selection. The Electric Reliability Council of Texas (ERCOT) runs an isolated grid that drew scrutiny after the February 2021 winter outages but offers large industrial users competitive pricing through direct interconnect agreements.

The state's right-to-work labor framework and university pipeline — including the University of Texas at Austin, Texas A&M, and Rice — provide an additional workforce base for fab construction and operations.

How would a second hub reshape US strategy?

A second US hub would mark a structural shift from the single-state, single-cluster model TSMC has used in Arizona. It would also spread TSMC's US workforce, supplier network, and tax base across two regions and reduce single-site operational risk.

Major TSMC customers — Apple, AMD, NVIDIA, and Qualcomm — have publicly lobbied for additional US-based capacity to reduce supply-chain exposure to Taiwan, where the company still operates the bulk of its leading-edge production. Industry estimates have placed US fabless customers at 60% to 70% of TSMC's revenue.

What is the policy backdrop?

The CHIPS and Science Act, signed in August 2022, allocated $52.7 billion for domestic semiconductor manufacturing and research, with $39 billion earmarked for direct manufacturing incentives. Federal review of the program has left the award framework in place while tightening reporting requirements for recipient companies.

Texas lawmakers, including Senator John Cornyn and Governor Greg Abbott, have publicly courted TSMC expansion since 2022. A second Texas hub would likely attract additional state-level subsidies through the Texas Enterprise Fund and local property tax abatements.

What remains unconfirmed?

• Whether TSMC has formally selected Texas over competing states
• The process-node roadmap for any potential Texas facility
• Whether a new hub would complement or substitute for any portion of the Arizona expansion
• Timing of any formal board approval

TSMC's board typically approves major capacity expansions during quarterly meetings. A formal disclosure would most likely arrive through a company-issued press release or a regulatory filing in Taiwan. Until TSMC confirms the report, the Texas plan remains a working consideration, not a project.