[News] TSMC Reportedly Eyes Potential US$45B Fab Expansion in Sherman, Texas, Raising Stakes for Samsung
TSMC is reportedly nearing a decision on Sherman, Texas, as its second major U.S. manufacturing hub, potentially intensifying competition with Samsung Electronics. According to ETNews, citing the Dallas Business Journal, Sherman, located in Grayson County, has reportedly entered site selection talks with TSMC over a semiconductor project worth tens of billions of dollars, emerging as a frontrunner for the expansion.
As noted by WFAA, citing the Dallas Business Journal, Texas state development documents outline a potential US$45 billion investment by an unnamed semiconductor manufacturer to build two fabs, create approximately 5,000 jobs over six years, and begin production by late 2029. However, the documents do not identify TSMC as the investor, the report adds.
The potential expansion would bring TSMC closer to Samsung’s U.S. manufacturing operations. ETNews notes that Sherman is roughly 300 kilometers, or a three-hour drive, from Samsung’s Taylor and Austin campuses. Competition could extend beyond securing major AI chip customers to recruiting skilled semiconductor engineers and construction workers, accessing power and water infrastructure, and obtaining state tax incentives, the report suggests.
Samsung, meanwhile, is advancing its own foundry expansion in Texas. According to News1, Samsung Electronics has begun installing equipment at its Taylor foundry plant in Texas and is considering further capacity expansion. Reuters reports that chip production is expected to begin in 2027. Yonhap News adds that Samsung plans to begin construction of Taylor Fab 2 by the end of 2026, targeting mass production in 2030.
Northern Texas Semiconductor Supply Chain Could Support TSMC Expansion
TSMC has confirmed that it is evaluating expansion opportunities in Texas, although no site has been finalized. During its October 15 earnings call, CEO C.C. Wei said the company had sent teams to assess potential locations in response to requests from major U.S. customers for additional manufacturing capacity.
Sherman’s growing semiconductor ecosystem could strengthen its appeal to TSMC. According to ETNews, the region’s expanding Taiwanese supply chain may support the company’s potential investment. Texas Instruments (TI), where TSMC founder Morris Chang once worked, is investing up to US$40 billion in four 300mm fabs (SM1–SM4) in Sherman. Nearby, Taiwan’s GlobalWafers operates a multibillion-dollar 300mm silicon wafer facility, potentially providing TSMC with a local wafer supply. In Fort Worth, Taiwanese chip testing firm KYEC is investing approximately US$1.3 billion in its first U.S. facility to support NVIDIA AI chip testing, the report adds.
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(Photo credit: TSMC)
