Taiwan Semiconductor Manufacturing Co. is assessing a new campus in Texas that could add hundreds of billions of dollars to its U.S. manufacturing push, Bloomberg reported, though the plan remains at an early stage.
According to people familiar with the matter cited by Bloomberg, the project’s prospects depend in part on whether the U.S. Congress extends an advanced manufacturing investment tax credit that is due to expire at the end of this year. Because the details have not been made public, the people asked not to be identified. TSMC told Bloomberg by text message: 「We do not comment on market rumors.」
Each fab could cost at least $20 billion
Bloomberg said the Texas proposal, if approved, would include multiple chip plants, with each fab carrying a price tag of at least $20 billion. For comparison, TSMC has already committed $265 billion to its Arizona campus, where several wafer fabs are under construction.
The company’s plan for its Phoenix site includes six wafer fabs, two advanced packaging facilities, and one research and development center.
AI demand is driving the review
Demand is a central factor behind the expansion review, Bloomberg said. North American customers have contributed more than 75% of TSMC’s wafer revenue so far this year, with AI chip designers including Nvidia and Advanced Micro Devices placing large orders for advanced-node capacity.
The AI boom has also tightened existing capacity. Vice Co-Chief Operating Officer Hou Yung-ching said last month that TSMC had to roughly double its planned spending on production equipment purchases over the past year.
Public disclosures point to the same pressure. At its second-quarter earnings conference in July, TSMC raised its 2026 capital expenditure forecast to $60 billion-$64 billion from an earlier $52 billion-$56 billion. That budget covers factory construction and equipment procurement.
Tax credit extension remains unresolved
Bloomberg also highlighted the uncertainty around the advanced manufacturing investment tax credit. The measure, tied to former President Joe Biden’s 2022 Chips Act, was increased to 35% and extended last year. Bloomberg said there is still no clear path for another extension this year.
Singapore is also under consideration
Texas is not the only location under recent review, Bloomberg reported. Several people familiar with the matter said TSMC has also been in contact with officials in Singapore. The city-state has been actively seeking semiconductor investment, already hosts several chip plants, and serves as an Asia-Pacific base for major AI developers including Meta.
Bloomberg noted that Texas is already home to major chip projects. Samsung Electronics operates a large semiconductor manufacturing campus there, while Elon Musk is developing the Terafab project in the state to supply chips across his business empire.
TSMC keeps its public stance unchanged
TSMC executives have kept their public comments cautious. Chairman and Chief Executive C.C. Wei and other senior managers have repeatedly said overseas expansion is intended to serve customer demand and depends on cooperation and support from local governments.
Beyond Arizona, TSMC is also building a plant in Kumamoto, Japan, with Sony Group, and has an early-stage project in Saxony, Germany.