TSMC is evaluating a potential new investment in Texas, people familiar with the matter said, a move that would extend the world's largest contract chipmaker's already substantial American manufacturing footprint.

The deliberations are at an evaluation stage, according to the sources, and no final commitment has been made. Details such as the scale of the investment, the process nodes involved, or the timeline for any decision remain undisclosed.

Texas already hosts TSMC's announced fab complex in Phoenix, Arizona, represents the company's primary US production base. The Arizona project, disclosed in 2020 and expanded twice since, now calls for six fabs and roughly $65 billion in total investment, with the first facility producing 4-nanometer wafers since late 2024.

A Texas site would mark a geographic diversification of TSMC's US manufacturing beyond Arizona, where the company has concentrated its American capacity to date.

The evaluation comes as chipmakers face mounting pressure to expand domestic US semiconductor production. Washington has tied federal incentives under the CHIPS and Science Act to domestic manufacturing commitments, and the political environment continues to favor companies that add American capacity.

TSMC has not commented publicly on the matter, and the company routinely declines to discuss unannounced investment plans. Reuters first reported the evaluation, citing sources familiar with the situation.

Any Texas project would join a growing roster of semiconductor manufacturing activity in the state. Samsung Electronics operates a large fab complex in Austin and is building a new facility in Taylor, while Texas Instruments continues to expand its 300-millimeter wafer fabs in Sherman and Richardson.

For TSMC, a second US state would spread operational and geopolitical risk at a time when customers, including Apple and Nvidia, are pushing suppliers to secure non-Taiwan capacity. The company's most advanced production remains concentrated in Taiwan, a vulnerability that US customers and policymakers have repeatedly flagged.

Whether the Texas evaluation matures into a committed project will depend on factors including customer demand guarantees, incentive terms, and workforce availability — considerations that shaped the multiyear negotiations preceding TSMC's Arizona commitments.