TSMC Weighs Dallas as Second US Hub While Taipei Greenlights $44 Billion in American Bets
Published on 09/29/2026 at 13:31 | Editorial boerse-global.de
Taiwan's chipmaking champion is pushing ahead on two fronts at once: securing government approval for billions already committed to American soil, and quietly exploring a far larger footprint in Texas that could eclipse even its flagship Arizona buildout.
Taipei's Ministry of Economic Affairs has cleared seven TSMC investment applications worth a combined $44 billion, a regulatory green light that locks in the equity backing for the company's US expansion. The most recent tranche, approved in July 2026, released $20 billion for the Arizona site, where TSMC's total commitment stands at $265 billion. That campus is slated to hold six wafer fabs, two advanced packaging plants and a dedicated research center.
Dallas Enters the Picture
According to the Taiwanese business daily Economic Daily News, TSMC is now evaluating Dallas, Texas as the site of a second US campus — one that could carry a bigger price tag than the Arizona project. Up to six advanced wafer fabs are under consideration for the Lone Star State, which would stitch together with Phoenix to form a semiconductor corridor across the southern United States. At least one Texas plant could run more cutting-edge processes than the Arizona facilities, extending TSMC's technological lead rather than merely replicating it.
The commercial logic is hard to ignore. American customers accounted for roughly 75.64% of TSMC's total revenue in the first half of 2026. Demand for high-performance and AI chips keeps climbing, political pressure to localize supply chains is intensifying, and the threat of US tariffs as high as 200% on chip imports hangs over the industry.
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A second US site would also help TSMC blunt geopolitical risk. At home, the island's semiconductor sector is running up against physical limits on land, grid capacity and water supply. Texas, already home to Texas Instruments, Samsung and Tesla, offers an established industrial network.
None of this is settled, however. The plans remain unconfirmed, board approval has yet to be granted, and suppliers have not been asked to prepare. Market watchers are therefore focused on TSMC's investor conference on October 15, 2026, where the company is expected to detail its capital spending plans.
Chiayi Expansion Targets the Packaging Crunch
Capacity growth is not confined to the United States. In Taiwan's Chiayi Science Park, TSMC intends to build five more advanced packaging plants, with roughly 200 hectares of state land opened for public hearing to accommodate them. Once fully built out, Chiayi would host ten packaging facilities in total — a direct response to the CoWoS bottleneck that has constrained major customers including Apple, Nvidia and AMD in their data-center and AI processor ambitions.
The smallest process nodes are seeing demand surge as well. Monthly capacity for the 2-nanometer node could reach about 120,000 wafers by the end of 2026, according to media reports, up from earlier industry estimates of 90,000 to 100,000 wafers. Nvidia, Apple, AMD, Qualcomm and MediaTek have all raised their capacity reservations for the node by 10% to 20%. Hou Yung-ching, a senior vice president at TSMC, said output of 2-nanometer wafers in the first full production year should run 45% above the level the 3-nanometer node reached in its 2023 debut.
Analysts See Tight Supply Through 2028
J.P. Morgan analysts view semiconductor stocks as attractively valued again following the recent consolidation in the AI sector. The US bank expects technology companies to keep spending heavily and projects that the supply-demand balance for advanced components will stay tight through 2028.
Investors appear to share that confidence. The stock closed Monday's session at EUR 399.00, leaving it just 5.1% below its 52-week high of EUR 420.50 — a level it has hovered near as the order book for leading-edge technology stays full and the company presses forward with the infrastructure needed to absorb rising volumes through the end of the decade.
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