TSMC is weighing Dallas, Texas as the site for a second U.S. wafer fab, Taiwan's Commercial Times reported on the 29th. The proposed plant would follow the foundry's Phoenix, Arizona campus and create what one source called a "Southern Semiconductor Dual-Core Corridor."

The Commercial Times and other Taiwan outlets, citing unnamed sources, said TSMC has prioritized the Dallas area. No formal investment decision has been made. The TSMC board has not approved the project. The company had not issued a statement on the report at publication time.

Why does the Dallas corridor matter now?

U.S. customers drove 75.64 percent of TSMC's revenue in the first half of this year, the source noted. The client list spans Nvidia, Intel, AMD, and Apple, each pulling volume tied to artificial intelligence and high-performance computing demand. Dallas and North Texas, already dubbed the "Silicon Prairie," host factories from Texas Instruments, Samsung Electronics, and Tesla.

The corridor concept would tie Phoenix output to the broader Texas customer base and supplier network already built by Texas Instruments, Samsung, and Tesla in the region. Phoenix itself is slated for up to 10 wafer fabs, two advanced packaging facilities, and one R&D center.

What is forcing the onshore move?

Three forces drive the onshore push, per the Taiwan source reporting. Customer demand led the list, followed by geopolitical risk concerns tied to Taiwan land, water, and power constraints, and exposure to U.S. tariff actions under the Trump administration. A source flagged the Trump administration's pressure for domestic manufacturing investment as a binding factor.

The source framed the move as a hedge against both Taiwan-side infrastructure limits and U.S.-side tariff risk. Either condition alone would justify partial relocation; both together raise the urgency, the report added.

How does Singapore fit into the picture?

Vanguard International Semiconductor (VIS), a TSMC affiliate, and Dutch chipmaker NXP opened their joint VisionPower Semiconductor Manufacturing Company (VSMC) fab in Singapore on the 28th. The 12-inch wafer facility targets automotive mixed-signal, power management, and analog products built on 40 to 130 nanometer process technology.

Production is scheduled to begin in 2027. Monthly capacity is set to reach 55,000 wafers by 2029. VIS committed 2.4 billion U.S. dollars. NXP committed 1.6 billion dollars. Vanguard runs the site. VSMC is studying a second Singapore fab.

Singapore's draw rests on low tax rates and proximity to China, the world's largest semiconductor consumer by volume. The city-state has drawn a string of large legacy-node projects recently and emerged as a hub for older processes.

What stands between TSMC and a Dallas build?

Board approval remains the gating step. State and federal incentive terms have not been disclosed. Construction start, ramp curve, and process node selection are all undefined. Water rights, grid capacity, and workforce pipeline for a leading-edge fab also remain unresolved.

TSMC has not addressed Dallas specifics on the record. Phoenix continues to absorb near-term U.S. capital through its multi-year build. A Dallas approval would mark the second major U.S. footprint announcement since work began in Arizona. Pricing pressure and customer allocation for U.S. accounts could follow the board call.