[News] TSMC Reportedly Eyes Texas Expansion That Could Top US$265B; VIS-NXP Mulls Second Singapore Fab

TSMC is reportedly considering a major U.S. expansion beyond Arizona. According to Economic Daily News, sources say the chipmaker is planning a second manufacturing hub that could include as many as six advanced wafer fabs, with Dallas, Texas emerging as a potential location. As the new fabs would likely adopt more advanced nodes, total investment could exceed the US$265 billion committed to its Arizona complex.

Economic Daily News notes that TSMC had not responded to a request for comment as of press time on September 28. However, rumors that the chipmaker could build a new fab in Texas have recently circulated within the semiconductor industry. Multiple unnamed supply-chain companies said that they had heard similar discussions from other suppliers, although TSMC has not notified them or asked them to make any preparations.

The report adds that TSMC is responding to demand from major customers including NVIDIA, Intel, AMD, and Apple for more U.S.-based production. The Trump administration has also renewed threats of tariffs of up to 200% on chipmakers that do not move manufacturing to the U.S., fueling speculation over further expansion.

TSMC’s Phoenix, Arizona complex is planned to include six wafer fabs, two advanced packaging facilities, and an R&D center. The company has stepped up overseas investment in recent years 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 1H26, according to the report.

Regarding the potential location, the report notes that 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.

VIS-NXP Reportedly Eyes Second Singapore Fab as Phase 1 Books Out

TSMC is not alone in expanding its manufacturing footprint as AI-driven demand reshapes foundry capacity plans. According to Economic Daily News, VIS Chairman and VSMC Chairman Leuh Fang said the VIS-NXP joint venture is evaluating a second phase of its Singapore expansion, as capacity at its first fab is already fully booked ahead of mass production. Anue adds that Phase 2 could move into more advanced 22/28nm nodes.

As noted by Economic Daily News, Fang said 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. Economic Daily News notes that the project is ahead of schedule, potentially bringing forward its break-even and profitability timelines. The fab could also reach full utilization earlier than its original 2029 target.

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, Anue notes.

Notably, Fang said 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. He expects interposers, a key component of CoWoS advanced packaging, to account for a “significant” share of VSMC’s capacity, as noted by Economic Daily News.

According to TrendForce, VIS benefited from advance procurement and growing orders for AI peripheral ICs, smartphone PMICs, and other power-related products in 2Q26. The stronger demand boosted both wafer shipments and ASP, lifting the company’s revenue 13.8% QoQ to US$451 million.

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(Photo credit: TSMC)