Taiwan Semiconductor Manufacturing Company is reportedly evaluating a second U.S. campus in Texas, with plans that could eventually include six advanced wafer fabs built around the Dallas area and an investment topping $265 billion. The chipmaker's board of directors has not approved the plan, and its suppliers have not yet been notified to begin preparations, according to people familiar with the matter.
The report, first detailed by finance.biggo.com, cites supply chain sources who point to Dallas as the most likely location for the expansion. It would mark a dramatic escalation from TSMC's existing Arizona buildout, where the company has already committed $265 billion — an investment the outlet describes as the largest single foreign direct investment in U.S. history. TSMC is expected to address its overseas investment plans during its third-quarter earnings call on October 15, though the company typically does not comment on market speculation or analyst estimates, the report notes.
If Texas becomes the site of TSMC's next major expansion, it would be entering a region that has already reshaped itself around semiconductor manufacturing. Texas Instruments has its headquarters and multiple facilities in the Dallas area, and the state offers relatively low electricity costs, abundant land, and investment incentives that have proven attractive to chipmakers, per the same report.
Arizona's Head Start and Texas's Growing Pull
TSMC's Arizona campus offers a preview of what a Texas commitment might look like over time. The company achieved high-volume production of 4-nanometer chips at its first Phoenix facility in the fourth quarter of 2024, and structural construction of its second Arizona fab wrapped up in 2025, according to TSMC. Volume production of 3-nanometer chips at that second fab is scheduled for the second half of 2027, while the Arizona campus is progressing from 5-nanometer toward 2-nanometer process technology, per the finance.biggo.com report.
That buildout has drawn substantial federal backing. The U.S. Department of Commerce finalized a $6.6 billion direct funding award alongside approximately $5 billion in loans for TSMC's Phoenix subsidiary in November 2024, according to the Office of Senator Mark Kelly, support for a $65 billion multi-fab complex. Taiwan's Ministry of Economic Affairs separately reported on September 26 that it has approved $44 billion in U.S. capital investments by TSMC across seven applications since December 2020, as reported by CNA — a fraction of the company's stated long-term $265 billion U.S. investment vision.
Why North Texas Already Looks Like Chip Country
North Texas has earned the nickname Silicon Prairie for good reason. Texas Instruments announced plans in June 2025 to invest more than $60 billion across seven U.S. fabs, including up to $40 billion for a four-fab mega-site in Sherman, north of Dallas, one of the largest private capital investments in Texas history. The state has been actively feeding that ecosystem: Governor Greg Abbott announced a $33.6 million Texas Semiconductor Innovation Fund grant to Texas Instruments in July to support a $700 million expansion of its 300mm wafer fab in Richardson.
The same state fund has spread incentives across the region's supply chain. Coherent Corp. received a $14.07 million TSIF grant in February to speed a $154 million expansion of its Indium Phosphide wafer fab in Sherman, a project Hoodline covered in Sherman's $14M chip windfall. Austin-based Silicon Labs opened a new R&D lab for chip design and testing this month backed by a $23 million TSIF grant, and Texas Tech University landed a $4.5 million grant in May to fund three years of research into wide and ultrawide bandgap semiconductor materials. Texas created the TSIF under House Bill 5174 in 2023, and total state appropriations have reached roughly $948 million after lawmakers added $250 million in 2025.
Samsung Electronics has already built advanced fabs in Taylor, Texas, expanding its Central Texas commitments to an investment range of $37 billion to $45 billion under CHIPS Act agreements, with up to $4.745 billion in federal CHIPS Act funding backing the project. That buildout has come with growing pains for the surrounding community, as Hoodline reported in its coverage of how the Samsung boom squeezes housing near Taylor.
AI Demand Is Fueling the Spending Spree
The reported Texas evaluation comes as TSMC's capital spending climbs sharply on the back of artificial intelligence demand. The company invested $26.8 billion in the first half of the year and raised its full-year 2026 capital expenditure guidance to $60 billion–$64 billion, up from prior guidance of $52 billion–$56 billion, according to the finance.biggo.com report. Between 70% and 80% of that spending goes to advanced process technology, with roughly 10% for specialty processes and 10%–20% for advanced packaging, testing, mask-making, and other projects. Institutional investors expect capital expenditure to climb even further next year as TSMC works to expand capacity for 2-nanometer, A16, and CoWoS technologies.
AI-related revenue approached $33 billion in 2025 and could exceed $60 billion this year, potentially reaching $87 billion to $100 billion in 2027, per the same report. TSMC chief executive C.C. Wei has said server AI processor revenue will account for more than 20% of total revenue by 2028, with the company defining AI-related demand to include AI accelerators, AI GPUs, AI ASICs, and HBM controllers. TSMC's 2-nanometer process has entered volume production on schedule, and the company projects rapid growth in 2026 driven by smartphones, high-performance computing, and AI applications, with agentic AI pushing greater CPU demand in data centers.
With more than 500 customers on its books, TSMC says customer engagement and project initiation must begin two to three years in advance, and order visibility remains clear through 2030. Investors are watching closely for updates on 2-nanometer yields, customer adoption, pricing strategy, and the upcoming A14 process, which is set to enter pilot production next year, according to Liu Pei-chen, who leads the Taiwan Institute of Economic Research's industry and economics database, as cited in the finance.biggo.com report.
What Remains Unresolved
Despite the scale of the figures involved, the Texas campus remains unconfirmed business. TSMC's board has not approved the plan, and suppliers have not received notification to begin preparations — a step the company typically takes before finalizing site decisions, per the finance.biggo.com report. TSMC's cumulative revenue reached NT$3.38687 trillion in the first eight months of the year, up 39.3% year-over-year, with August revenue alone climbing 53.3% to NT$514.806 billion; the company will report September revenue on October 8. Its shares were quoted around NT$2,490 to NT$2,495 on Tuesday, up roughly 0.61% on the day, as the market awaited further word on the company's next move.
Arizona, meanwhile, continues to draw its own share of attention as Hoodline detailed in reporting on how North Phoenix scored big as TSMC's second Phoenix fab reached structural completion.
