TSMC is evaluating construction of a multibillion-dollar chipmaking campus in Texas, adding a second major US manufacturing site as demand for AI accelerators strains global capacity, Yahoo Finance reports.

The world's largest contract chipmaker has not finalized the plan, and the report describes the project as under consideration rather than committed. Still, the scale under discussion — a full campus rather than a single fab — signals how sharply TSMC's US footprint could expand beyond its existing Arizona operations.

TSMC already operates or is building advanced fabs in Phoenix, Arizona, where it has committed to multiple phases of leading-edge production. A Texas campus would mark the company's second major US manufacturing hub and its first in the state, a location that would place fabrication capacity closer to a growing cluster of AI-system builders and defense contractors in the Southwest.

The timing matters commercially. AI chips — the graphics processors and custom accelerators that dominate hyperscaler capex — are among the tightest supply segments in the industry, and packaging capacity for large die sizes is equally constrained. NVIDIA, TSMC's largest AI customer, depends on the foundry's leading-edge nodes and CoWoS advanced packaging to ship its data-center products. Any added capacity TSMC brings online, in Texas or elsewhere, feeds directly into that pipeline.

The reported deliberation also fits the geopolitical frame that now shapes every large fab decision. Washington's CHIPS Act incentives and tariff threats have pushed leading chipmakers toward US production, and TSMC has already raised its Arizona commitment substantially from its original single-fab plan. Texas, with its own incentive programs and power-cost advantages, has courted semiconductor investment aggressively — Samsung's Taylor, Texas fab sits roughly 30 miles from Austin as proof the state can land multibillion-dollar projects.

What remains unknown from the report: the process node or wafer size a Texas campus would run, a construction timeline, a capital figure, or a customer commitment structure. Those details typically arrive only when a board approves the investment, as happened with TSMC's successive Arizona expansions. Until then, the Texas plan sits on the roadmap side of the ledger — a serious option, not a confirmed capex line.

For TSMC's customers, the calculus is straightforward. Each new campus the foundry approves adds capacity 18 to 36 months out, and AI demand curves are steep enough that even aggressive buildouts in Arizona, Japan and Germany have not eased the shortage of advanced logic and packaging. If TSMC's board greenlights the Texas campus, expect rivals Intel and Samsung to face sharper competition for US customers — and for Austin to become the second Sun Belt metro, after Phoenix, anchoring leading-edge chip production in America.