TSMC weighs a multibillion-dollar Texas campus as AI demand strains capacity
Tags Industry · AI / ML
TSMC is considering a new Texas campus that would add tens of billions of dollars to its US expansion, with each fab costing at least $20 billion, according to people familiar with the plans. The company has already committed $265 billion to its Arizona site and has roughly doubled planned equipment purchases over the past year to keep up with AI demand. North America accounts for more than 75% of TSMC's wafer revenue so far this year. The Texas investment is contingent on US legislators extending an advanced-manufacturing tax credit set to expire at the end of 2026, and TSMC has also held talks with Singapore officials about a potential site.
Technical significance
A Texas campus would deepen the geographic diversification of leading-edge capacity that began with Arizona, Japan and Germany, reducing single-point exposure to Taiwan. The tie to an expiring US manufacturing tax credit signals that the pace of onshoring may depend more on fiscal policy than on demand.