Taiwan Semiconductor Manufacturing Co. is evaluating a new production campus in Texas, according to ABMedia, in a plan that could add tens of billions of dollars in capital spending to its U.S. foundry footprint. The report said the potential investment is being driven by continued growth in artificial intelligence chip demand, with North America now accounting for more than 75% of the company’s wafer revenue and customer mix.
Texas plan may include multiple fabs
Citing people familiar with the matter, the report said the Texas project under evaluation would include multiple fabrication plants. Bloomberg was cited as saying each fab would cost at least $20 billion to build.
The expansion is said to hinge on whether the U.S. Congress extends the Advanced-Manufacturing Tax Credit before it expires at the end of the year. Under the CHIPS and Science Act framework, the tax credit stands at 35%, though any extension still requires negotiations between the two major parties in Washington.
AI demand lifts North America share above 75%
The report linked the latest expansion review to strong demand for advanced computing hardware from major technology companies such as Nvidia and AMD. That demand has kept advanced-node capacity tight.
North America now contributes more than 75% of TSMC’s wafer revenue, according to the report, highlighting the weight of U.S. end customers in the company’s broader business. To handle rising orders, TSMC has increased equipment procurement plans and is also studying local manufacturing options closer to customers.
ABMedia said TSMC has already committed about $265 billion in Arizona. If the Texas campus moves ahead, it could strengthen supply resilience for the North American market.
Taiwan expansion continues alongside overseas buildout
Beyond Texas, TSMC is also continuing to assess overseas locations including Singapore, the report said. At the same time, domestic expansion in Taiwan is still moving forward, with the market expecting 13 new plants there.
Analyst Wang Rongxu said TSMC’s overseas push has not slowed its local buildout. The dual-track strategy reflects strong global demand for computing hardware while keeping the company’s most advanced process technologies and core research and development rooted in Taiwan.
The report added that Taiwan’s established supply-chain cluster and engineering talent base remain central to TSMC’s technology lead and manufacturing efficiency.
Engineering contractors draw market attention
Under this parallel expansion model, turnkey contractors with cross-border execution capabilities and advanced-process certifications are seen as direct beneficiaries in the report. Areas mentioned include cleanroom electromechanical integration, chemical and gas supply systems, and cleanroom operations and maintenance equipment.
The report said market attention has recently focused on Acter Co. (2404), Marketech International Corp. (6196), and Yankee Engineering Co. (6691), all of which are tied to advanced semiconductor facility engineering.