TSMC Reportedly Weighs Texas Chip Investment On Top Of $265B Arizona Push

TSMC increased its Arizona commitment by $100 billion in July, bringing the total from $165 billion to $265 billion.

• According to a Reuters report, TSMC has not finalized any plans for Texas, with the potential project still under evaluation.
• CEO C.C. Wei previously said TSMC expects to build "probably [an] additional four or more fabs" in Arizona.
• A new Texas project would further broaden TSMC's U.S. manufacturing footprint amid efforts to expand domestic semiconductor production.

Taiwan Semiconductor Manufacturing Co. (TSM) is reportedly evaluating a potential investment in Texas to expand its chip production footprint in the U.S.

According to a Reuters report, the plans have not been finalized. Any Texas investment would come on top of the $265 billion TSMC has already committed to its Arizona operations, it added.

TSM stock edged 0.2% lower in pre-market trade, on track to post its second straight month in the green. On Stocktwits, retail sentiment around the Taiwanese company improved to ‘bullish’ from ‘neutral’ territory over the past day. 

TSMC did not immediately respond to Stocktwits' request for comment.

TSMC Weighs Texas Investment

The potential Texas investment would give TSMC another U.S. manufacturing location as the company continues expanding its domestic chip production footprint.

Reuters reported that the plans are still under evaluation, meaning the size, timing and scope of any Texas project remain unclear.

TSMC increased its Arizona investment by $100 billion in July, raising the total from its initial $165 billion commitment to $265 billion. At the time, CEO C.C. Wei said the company expected to build "probably [an] additional four or more fabs," spanning both front-end chip manufacturing and back-end packaging facilities.

Including current and planned projects, TSMC's Arizona footprint is expected to include 12 fabrication and advanced packaging facilities, along with a dedicated research and development center.

Trump’s Push For US Chipmaking

TSMC's U.S. expansion has unfolded alongside the Trump administration's push to bring more semiconductor manufacturing onshore, including through tariff threats targeting imported chips.

The January 2026 U.S.-Taiwan trade deal included commitments for at least $250 billion in direct Taiwanese investment in the U.S., plus another $250 billion in credit guarantees for additional supply-chain investment. Taiwan's broad tariff rate was cut to 15% from 20%.

TSMC's $100 billion increase to its Arizona commitment followed the deal, with Commerce Secretary Howard Lutnick calling it evidence of "the Trump Administration's commitment to strengthening domestic manufacturing."

TSM stock has gained 50% this year and nearly 70% in the last 12 months. 

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