From Arizona to “Silicon Prairie” Texas: TSM.US (TSM.US) US production expansion plan may go one step further

The Zhitong Finance App learned that global foundry leader TSM.US (TSM.US) is evaluating potential investments in Texas to expand its chip production in the US. According to foreign media quoting people familiar with the matter, the potential investment will be an additional layout in addition to the 265 billion US dollars that TSMC has already promised to invest in the Arizona business, and the relevant plans have not yet been finalized.

According to Taiwanese media quoting information from the semiconductor equipment industry chain, TSMC is evaluating the construction of the second largest manufacturing park in the US and planning to build up to six more advanced fabs. The potential foothold points to Dallas and Northern Texas, and the scale of investment may exceed the Arizona plant.

The choice of location in Texas was no accident. Known as the “Silicon Prairie,” Dallas and North Texas have formed mature clusters for semiconductor manufacturing, silicon wafer supply chains, optical communications and defense military industries. Major manufacturers such as Texas Instruments, Samsung, Coherent, and Tesla have all set up factories locally.

Wells Fargo analyst Joe Quatrochi pointed out that several fabs are already in operation in the region, making it a reasonable location for TSMC to set up a second campus. Additionally, Texas's advantages in terms of land, energy, and talent make it attractive to advanced, energy-intensive fabs.

From a strategic perspective, the 2nm expansion of production is an important point. TSMC's 2 nm process achieved initial revenue contributions in the second quarter of 2026. Major customers include Apple, Nvidia, AMD, and Qualcomm. As major customers increase orders by 10% to 20%, TSMC is expanding production at an accelerated pace. The 2-nanometer monthly production capacity may reach 120,000 tablets by the end of the year, higher than the previous market estimate of 90,000 to 100,000 tablets, and the production capacity level originally scheduled to be reached in 2027 is expected to be achieved ahead of schedule. Quatrochi said that if production expansion is implemented, it should be viewed as a potential incremental benefit for semiconductor equipment companies.

Customer drive and policy pressure together form the dual driving force for TSMC to increase manufacturing in the US. In the first half of 2026, US customers accounted for about 75.64% of TSMC's revenue. Meanwhile, the Trump administration continues to pressure chipmakers to move production capacity back to the US, threatening to impose tariffs of up to 200% on companies that do not set up factories in the US, and further push TSMC to expand its presence in the US.

In terms of market influence, if TSMC launches the second park in Texas, it will connect Arizona wafer manufacturing with the Texas advanced ecosystem, forming a pattern of two major manufacturing bases in the US and favoring the semiconductor equipment supply chain. However, the specific plans, investment amounts, and process points of the six fabs have not been officially confirmed. Supply chain operators believe that the site selection evaluation has come to an end, but TSMC's board of directors has yet to decide.

TSMC announced an additional $100 billion investment in Arizona in July, bringing its total planned investment in the state to $265 billion. The expansion is expected to add four additional semiconductor manufacturing and packaging facilities, bringing the total number of facilities in the US to 12.

TSMC's first US chip factory in Phoenix began mass production of 4 nm chips at the end of 2024. Its second plant is expected to start producing more advanced 3 nm chips in the second half of next year.