Dallas leading candidate for second US wafer site

Texas facility may feature more advanced processes than Arizona

Move targets Nvidia, AMD and Apple demand

Southern 'dual-core' semiconductor corridor taking shape

The TSMC logo is displayed on the outer wall of the company's factory at Hsinchu Science Park in northern Taiwan. [Getty Images]
The TSMC logo is displayed on the outer wall of the company's factory at Hsinchu Science Park in northern Taiwan. [Getty Images]

TSMC, the world's largest contract chipmaker, is reportedly pursuing plans to build a semiconductor factory in Texas — its second US production base — after committing $265 billion to facilities in Arizona. The move is seen as an effort to expand its US manufacturing footprint amid surging demand for AI chips, bring production closer to key customers such as Nvidia, AMD and Apple, and respond to US pressure for semiconductor supply chain localization.

TSMC is prioritizing the Dallas area in Texas as its leading candidate for a second US wafer production site, according to Taiwan's United Daily News and other media outlets Tuesday.

The push for additional US investment is driven by rapidly growing demand for AI and high-performance computing chips. A large share of TSMC's major customers — including Nvidia, AMD and Apple — are American companies, and US customers accounted for 75.64 percent of TSMC's total sales in the first half of this year.

The Texas facility could also feature more advanced manufacturing processes than those currently being built at TSMC's Phoenix, Arizona campus, according to reports.

If the Texas investment materializes, TSMC's total US investment would far exceed the $265 billion already planned for Arizona.

TSMC is also said to be envisioning what it calls a "southern semiconductor dual-core corridor" linking Arizona and Texas. The concept would make Arizona the core hub for wafer manufacturing while connecting it to Texas's advanced semiconductor ecosystem, creating a large-scale semiconductor supply chain across the US South.

The Dallas and North Texas region is already known as "Silicon Prairie," a nod to California's Silicon Valley. Texas Instruments, Samsung Electronics and Tesla have all made major investments in the area, rapidly expanding its semiconductor and advanced manufacturing ecosystem.

TSMC's entry could significantly amplify the cluster effect, concentrating both chip producers and major chip consumers across North Texas, analysts say.

A Texas facility would also allow TSMC to diversify its US production base geographically. Back in Taiwan, securing land, water and power for continued expansion of advanced chip facilities is becoming an increasingly pressing challenge. Expanding US production capacity would both spread geopolitical risk and give TSMC a stronger hand in meeting customers' demands for local manufacturing.

Pressure from the Donald Trump administration on chipmakers to invest in the United States also appears to be a factor. Taiwanese media have noted that expanding US production capacity would help TSMC reduce the risk of steep tariffs on semiconductors while also satisfying the administration's push for supply chain localization.

TSMC is already developing Arizona into its largest advanced chip production base outside Taiwan. The company plans to build up to 10 wafer factories, two advanced packaging facilities and one research and development center in the Phoenix area to meet AI and HPC demand.

Should the Texas factory also go ahead, TSMC's US strategy would shift from a single Arizona hub to a dual-anchor structure spanning Arizona and Texas.

However, the Texas investment has not been finalized. TSMC has not issued an official statement on the reports, and the matter has yet to go before its board of directors.

Expansion by TSMC affiliates is also continuing. VSMC — a joint venture between TSMC affiliate Vanguard International Semiconductor and Dutch chipmaker NXP — held the opening ceremony for its first 12-inch wafer factory in Singapore on Monday.

The plant is set to begin producing automotive mixed-signal, power management and analog semiconductors in 2027, with plans to expand monthly capacity to 55,000 wafers by 2029. VSMC is also considering building a second semiconductor factory in Singapore.


sjy@heraldcorp.com