TSMC is evaluating a further expansion of its US manufacturing footprint in Texas, on top of its already announced $165 billion Arizona investment package, TechPowerUp reports. The combined commitment under discussion would bring the company's total US outlay to roughly $265 billion.

The reported Texas evaluation signals that TSMC's American buildout may not stop at its Arizona complex, where the company has committed to six fabs. That March announcement added $100 billion to an initial $65 billion pledge covering three fabs, making TSMC's Arizona site one of the largest single greenfield semiconductor projects in US history.

Details of the Texas plan remain sparse. The report does not specify a site, a timeline, wafer capacity or which process nodes would run at a potential Texas facility. Any figures beyond the $265 billion aggregate figure should be treated as unconfirmed until TSMC or government officials announce them formally. TSMC has not publicly confirmed the Texas evaluation.

The commercial logic for a second US hub is straightforward. A Texas site would give TSMC geographic redundancy against localized disruption — weather, labor or logistics — at a single mega-site, and would place capacity closer to customers with operations in the state. Texas has spent years courting semiconductor investment, and a TSMC presence there would intensify competition for skilled fab engineers and construction labor already stretched by projects in Arizona, Ohio and Utah.

The geopolitical context shapes the economics. Washington's CHIPS Act subsidy framework and successive tariff threats from the Trump administration have pushed leading-edge manufacturers to localize production. TSMC's Arizona fabs are slated to run advanced logic, and adding capacity in Texas would deepen the company's alignment with US policy while diversifying its manufacturing base beyond Taiwan.

For customers — particularly Apple, Nvidia, AMD and Qualcomm — additional US capacity would expand the pool of American-made leading-edge wafers, though at costs that remain well above TSMC's Taiwanese fabs. How TSMC prices that premium across its customer base will determine how aggressively US capacity is absorbed.

The reported evaluation is an early signal, not a commitment. If TSMC proceeds, expect a phased announcement structure similar to Arizona's — an initial fab commitment followed by expansions as construction milestones, subsidy terms and customer demand align.