TSMC is reportedly eyeing a significant expansion in the United States, with considerations to establish a second manufacturing hub in Texas. This new facility could include up to six advanced wafer fabs, although the investment specifics are not confirmed to surpass the US$265 billion already committed to its Arizona complex.
The potential site in Dallas, Texas, is gaining attention as a strategic location for TSMC's expansion. Known as the “Silicon Prairie, ” the Dallas–North Texas region hosts a robust semiconductor ecosystem, with companies like Texas Instruments, Coherent, Samsung, and Tesla already operating there. A TSMC presence could further bolster the local semiconductor supply chain.
Industry sources indicate that TSMC's move is driven by demand from major clients such as NVIDIA, Intel, AMD, and Apple, who are seeking more U. S.-based production. Additionally, the Trump administration's renewed threats of tariffs up to 200% on chipmakers that do not relocate manufacturing to the U. S. are fueling speculation about TSMC's expansion plans.
TSMC's existing complex in Phoenix, Arizona, is set to include six wafer fabs, two advanced packaging facilities, and a research and development center. This expansion is part of TSMC's strategy to mitigate geopolitical risks and address constraints in Taiwan, such as land, water, and electricity shortages. In the first half of 2026, U. S. customers accounted for approximately 75.64% of TSMC's revenue.
Global Semiconductor Expansion
TSMC is not the only company expanding its manufacturing footprint. The AI-driven demand is reshaping foundry capacity plans globally. VIS and VSMC, through their joint venture, are considering a second phase of expansion in Singapore. Their first fab is already fully booked ahead of mass production, prompting the evaluation of more advanced 22/28nm nodes for Phase 2.
VIS Chairman Leuh Fang highlighted that the AI boom is driving semiconductor demand, with tight supply in mature-node technology expected to persist for several years. VIS's 8-inch fabs in Taiwan are operating at full capacity, reflecting the strong demand. VSMC's Phase 1 fab aims for mass production in the first quarter of 2027, with risk production potentially starting in the fourth quarter of 2026.
The Singapore fab's Phase 1 will utilize 130nm to 40nm nodes to produce mixed-signal, power management, and analog products, as well as silicon interposers. Monthly capacity is projected to reach 44,000 12-inch wafers at full utilization. The plan was revised from 55,000 wafers due to the additional process steps and equipment required for silicon interposer production.
Fang expects interposers, a crucial component of CoWoS advanced packaging, to play a significant role in VSMC's capacity. VIS has benefited from advance procurement and growing orders for AI peripheral ICs, smartphone PMICs, and other power-related products in the second quarter of 2026, boosting wafer shipments and average selling prices. This led to a 13.8% quarter-on-quarter revenue increase, reaching US$451 million.
