Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker, is exploring an expansion into Texas as demand for artificial intelligence chips continues to surge.
The company confirmed that it had sent teams to Texas to assess potential investment opportunities. Chairman and CEO C.C. Wei said TSMC was evaluating options to expand its U.S. manufacturing footprint beyond Arizona.
“The demand, actually, is still far above our capability today to supply, and we’re working very hard to narrow the gap,” Wei said.
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The potential Texas investment would be in addition to TSMC’s existing commitment of $265 billion to expand semiconductor manufacturing in the United States, including facilities in Arizona. In July, the company announced an additional $100 billion investment, bringing its total planned U.S. investment to $265 billion.
Wei said the investment would help expand the U.S. semiconductor industry, strengthen supply chain resilience and create well-paying jobs in the high-tech sector.
TSMC is also discussing a possible role in Elon Musk’s proposed Terafab chip manufacturing complex in Texas. Musk has promoted the project as a way to increase chip production for his businesses, including SpaceX and Tesla. Wei said any factory operated by TSMC would have to remain under the Taiwanese company’s control. Musk, however, has said his companies would build and operate the facility, with TSMC potentially leasing part of it. The companies have not announced a final agreement.
TSMC manufactures more than 90% of the world’s most advanced chips and supplies major technology companies, including Apple and Nvidia. As the AI industry’s computing needs grow, semiconductor manufacturers are under increasing pressure to expand production and meet demand.
The company’s latest financial results reflect the surge in demand. TSMC reported net profit of 763.1 billion New Taiwan dollars, or about $24 billion, for the July-September quarter, a 69% increase from a year earlier. Revenue rose 51% to 1.49 trillion New Taiwan dollars, or about $46 billion.
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“Looking ahead, we continue to observe consumer and price-sensitive end market segments are being challenged due to the impact of rising component prices and macroeconomic uncertainties,” Wei said. “As such, we have been prudent in our business planning going into 2027.”
In January, the United States announced a trade agreement with Taiwan that included plans to reduce tariffs on Taiwanese goods to 15% in exchange for major investment commitments to expand semiconductor manufacturing and related supply chains in the United States.
TSMC plans to spend between $60 billion and $64 billion on capital expenditures in 2026, up from its previous forecast of $52 billion to $56 billion.