TSMC is expanding its chip empire in the U.S.: After six plants in Arizona, six more may come in Texas

So far, Taiwan Semiconductor Manufacturing Co., Ltd.’s efforts to localize chip production in the United States have mainly focused on Arizona, where the total number of chip factories should increase to 12, with four chip packaging plants and a research center also emerging nearby. New news shows that TSMC is also interested in using Texas as its second base in the United States.

Image source: TSMC

version economic daily According to reports, the company may set up six more advanced factories in Texas to process silicon wafers and subsequently form semiconductor wafers. According to Taiwanese sources, if TSMC will invest a total of up to $265 billion in the development of the Arizona cluster, the investment in Texas may be even higher.

TSMC has a thriving customer base in the United States, which accounts for more than 75% of its revenue, but most of the company’s operations are on the island of Taiwan. TSMC has been aggressively trying to get closer to U.S. customers for years, but so far the only wafer contract manufacturing facility producing 4nm components for local customers is in Arizona. The U.S. authorities under Biden tried to encourage localization of TSMC’s production through subsidies, while Donald Trump armed himself with tariffs during his second term as president to influence Taiwanese companies.

TSMC is expected to put down roots in Dallas, North Texas, where there is some infrastructure to develop semiconductor manufacturing. Samsung Electronics owns two technology parks in the state, although the oldest in Austin is no longer considered advanced in terms of the range of technology used. But in Taylor’s view, the Korean manufacturer will start producing 2nm chips to meet Tesla’s needs. In Arizona, TSMC has water and human resource issues, while Texas not only provides sufficient labor, but also has developed energy infrastructure and lower tax burdens. It is worth noting that TSMC’s board of directors has not yet made a decision to start establishing a business in Texas, so this measure has not yet been finalized.