TSMC evaluates a Texas expansion beyond its $265B plan

Taiwan Semiconductor Manufacturing Company is evaluating a potential investment in Texas to expand chip production in the United States, according to a Reuters report on Wednesday that cited two people familiar with the matter. The plans have not been finalized.

Any project in Texas would add to the $265 billion that TSMC has already committed to Arizona, one of the sources said. TSMC is not considering Texas as a replacement for its Arizona operations, but rather as an additional layer of manufacturing.

In July, TSMC expanded its Arizona commitment by another $100 billion, raising its planned total in the state to $265 billion. At the time, CEO C.C. Wei stated that the company would probably build another four or more fabrication plants, covering both front-end and back-end facilities.

The Arizona site is expected to include 12 fabrication and advanced packaging facilities along with a research and development center. CFO Wendell Huang told Reuters in July that TSMC would continue investing in the United States.