Taiwan Semiconductor Manufacturing Company (TSMC) is evaluating a potential TSMC Texas investment that would extend its US manufacturing footprint beyond the $265bn it has already pledged to Arizona, Reuters reported, citing unnamed sources. The people familiar with the discussions said the plans have not been finalised and spoke anonymously because they were not authorised to comment publicly.
A growing US commitment
\p>The Arizona programme alone has grown substantially in a short period. TSMC announced a further $100bn commitment there in July, bringing its total planned Arizona investment to $265bn. That figure covers four additional advanced semiconductor manufacturing facilities, lifting the planned US total to 12 leading-edge semiconductor and packaging facilities. The July announcement came after a March 2025 pledge to add $100bn to an original $65bn US investment programme.
Chief executive C C Wei said at the time of that March commitment that ‘probably additional four or more fabs will be built’, referring to both front-end and back-end facilities. Chief financial officer Wendell Huang told Reuters in July that the company would continue to invest in the US. TSMC’s Arizona operations will also include a research and development centre.
According to TSMC, its Arizona fab already employs more than 3,000 people across 1,100 acres of land. The site is part of an expanding US presence that also includes a fab in Camas, Washington, and design service centres in Austin, Texas, and San Jose, California. The reported Texas investment would be a manufacturing addition rather than an extension of the existing design service centre in Austin.
The most advanced facility in the Arizona pipeline is set to produce processors based on a 1.6-nanometer node, opening towards the end of the decade, according to SiliconANGLE. That node would place TSMC at the frontier of semiconductor fabrication.
TSMC Texas investment sits within a broader global expansion
The potential TSMC Texas investment is one strand of an international buildout. In May, TSMC unveiled plans to open a chip design centre in Munich, Germany. In August, TSMC and Sony Semiconductor Solutions Corporation announced the execution of a legally binding definitive agreement to establish Advanced Vision Semiconductor Manufacturing Corporation, a joint venture in Japan. The venture is to develop and manufacture smartphone image sensors using advanced process technology, with volume production expected to begin in 2029.
Revenue figures published last month reinforce the pace of the business underlying these commitments. On a consolidated basis, net revenue for August 2026 stood at approximately T$514.81bn ($16.13bn), a 10.1% increase from July 2026 and a 53.3% rise compared with August 2025. Across the first eight months of 2026, total revenue reached T$3.38tn, up 39.3% on the same period in 2025.
Any Texas decision would add a second state to what is already the largest foreign semiconductor manufacturing commitment in US history. Whether TSMC formalises those plans will become clearer as the company’s capital allocation discussions continue into the remainder of the year.
