TSMC weighs multibillion-dollar Texas campus to boost AI chip production

Taiwan Semiconductor Manufacturing Co. is weighing a new Texas campus that would include multiple fabs, each with a price tag of at least $20 billion, potentially adding tens of billions to its U.S. expansion. This follows a $265 billion commitment to a sprawling Arizona complex where several plants are under construction. The push is driven by record AI chip orders from Nvidia, AMD and other designers, which have forced TSMC to double its equipment purchases in the past year.

The Texas investment hinges on Congress renewing an advanced-manufacturing tax credit that expires later this year. While Texas offers an existing semiconductor base, including Samsung’s complex and Elon Musk’s Terafab project, TSMC is also evaluating Singapore as a possible site and maintains projects in Japan’s Kumamoto with Sony and a nascent plant in Saxony, Germany. Company executives say any overseas expansion will be guided by customer demand and local government support.