Dallas, October 4 — TSMC, the world’s largest contract chipmaker, is reportedly considering a major U.S. expansion beyond its Arizona facility, with Dallas, Texas emerging as a potential location. According to Economic Daily News, the expansion could include as many as six advanced wafer fabrication plants, with total investment potentially exceeding US$265 billion—surpassing the US$265 billion already committed to its Arizona complex. The expansion is reportedly driven by demand from major customers such as NVIDIA, Intel, AMD, and Apple for more U.S.-based production.
The Trump administration has also renewed threats of imposing tariffs of up to 200% on chipmakers that do not move manufacturing to the U.S., further fueling speculation over TSMC’s potential move. TSMC’s Phoenix, Arizona complex is planned to include six wafer fabs, two advanced packaging facilities, and an R&D center.
The company has been increasing overseas investments to diversify geopolitical risks and address constraints in Taiwan involving land, water, and electricity. U.S. customers accounted for about 75.64% of TSMC’s revenue in the first half of 2026, according to the report. The Dallas–North Texas region, known as the ‘Silicon Prairie,’ has established semiconductor manufacturing, silicon wafer, optical communications, and defense clusters, with companies including Texas Instruments, Coherent, Samsung, and Tesla operating in the region.
A TSMC site there could further strengthen the local cluster and support U.S. semiconductor supply-chain localization. Meanwhile, VIS-NXP, a joint venture between VIS and NXP Semiconductors, is evaluating a second phase of its Singapore expansion, as capacity at its first fab is already fully booked ahead of mass production.
The second phase could move into more advanced 22/28nm nodes. The AI boom is driving semiconductor demand, with tight mature-node supply potentially persisting for several years. VIS’s 8-inch fabs in Taiwan are already running at full capacity, underscoring the strength of current demand.
VSMC’s Phase 1 fab is targeting mass production in 1Q27, with risk production potentially beginning in 4Q26 for products including power-related chips and silicon interposers. The project is ahead of schedule, potentially bringing forward its break-even and profitability timelines. Phase 1 will use 130nm to 40nm nodes to produce mixed-signal, power management and analog products, as well as silicon interposers.
Monthly capacity is expected to reach 44,000 12-inch wafers at full utilization. Notably, the monthly capacity plan was revised from 55,000 to 44,000 wafers, not because of weaker demand, but because silicon interposer production requires additional process steps and equipment, limiting overall wafer output.
Interposers, a key component of CoWoS advanced packaging, are expected to account for a ‘significant’ share of VSMC’s capacity. As the semiconductor landscape continues to evolve, the implications of these developments for both TSMC and the broader industry remain a focal point for observers and stakeholders alike.
