Taiwan Semiconductor Manufacturing Company is reportedly weighing a second major US campus, this time in Texas, as AI chip demand keeps pressuring its capacity. The preliminary talks center on a Dallas-area site that could house up to six advanced fabs, but the project hinges on board approval and an expiring federal tax credit.
Taiwan Semiconductor Manufacturing Company is reportedly considering a second major US manufacturing campus, this time in Texas. The move would deepen its investment in American chipmaking at a moment when demand for AI chips shows no sign of cooling.
According to Bloomberg, the discussions are preliminary. The world's most important contract chipmaker is weighing whether to stack its American bets two states high.
A Dallas-area site with six fabs on the table
The potential site would likely sit near Dallas, in a region boosters have branded the "Silicon Prairie." Reports indicate the campus could include as many as six advanced wafer fabrication facilities.
Each new Texas fab is projected to cost at least $20 billion, and multiplying that figure across several facilities could push the total investment into the tens of billions of dollars. The Texas campus is also expected to feature more advanced production technologies than TSMC's existing US operations. Nothing is final yet, however: the plans have not been approved by TSMC's board, and the company's suppliers have reportedly not been told.
Arizona remains the baseline
Texas would supplement, not replace, TSMC's sprawling Arizona footprint. The company has already committed $265 billion to its Arizona campus, a figure that includes an additional $100 billion added in July 2026. The expanded Arizona plan covers up to 12 facilities plus a research and development center.
On the Taiwanese side, the Ministry of Economic Affairs has approved $44 billion in TSMC capital investments in the US across seven applications since December 2020, with the most recent $20 billion tranche cleared in July 2026. In the first half of 2026, US customers contributed approximately 75.64% of TSMC's wafer revenue, with Nvidia, Apple, and AMD among the clients that lean on TSMC to manufacture their most advanced designs.
A tax credit set to expire
There is a significant catch: the Texas project reportedly hinges on the extension of a 35% advanced-manufacturing tax credit tied to the CHIPS Act. That credit is set to expire at the end of 2026, and for a project where a single fab could cost $20 billion or more, the credit is not a rounding error.
Whether Congress extends it could determine if Texas becomes a construction site or stays a slide in a strategy deck. For investors, the next concrete checkpoint is TSMC's earnings call scheduled for October 15, 2026, where the company is expected to offer insight into its overseas investment strategy.
Source: Crypto Briefing
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