Reports surfaced this week that TSMC is evaluating a six-fab manufacturing campus near Dallas, Texas — a project that could exceed the $265 billion already committed to Arizona and potentially double the company's U.S. footprint. Reuters confirmed on September 30 that TSMC is evaluating a potential investment in Texas to expand U.S. chip production, in addition to its existing Arizona commitment.
In Taiwan, shares edged up 0.61% to NT$2,490 on September 29 , but U.S.-listed ADRs dipped in premarket trading as investors weighed the staggering capital required.
Three-Quarters of Revenue Comes From American Customers — and They Want Local Supply
Approximately 75.6% of TSMC's revenue in the first half of 2026 came from U.S. customers.
The company is responding to demand from Nvidia, Intel, AMD, and Apple for more U.S.-based production. Building where the buyers are shortens delivery times and insulates revenue from cross-border disruptions — but it also means TSMC is being pulled into a spending race by its own client base.
Tariff Threats Make Expansion Less Optional Than It Looks
Industry sources say the U.S. government has repeatedly signaled that chipmakers failing to expand domestic production could face tariffs as high as 200%.
Direct local manufacturing shields TSMC's profit margins from border tariff assessments. In other words, the Texas hub isn't just about chasing demand — it's about protecting the 65%–67% gross margins TSMC guided for Q3 2026.
A $60–64 Billion Annual Spending Habit That Keeps Getting Bigger
TSMC lifted its 2026 capital expenditure guidance to $60–64 billion, a significant bump from its prior $52–56 billion forecast.
It also raised revenue growth guidance to slightly more than 40% , and Q2 net profit surged 77.4% year-over-year. The money is clearly coming in, but the market's reaction after July's beat-and-raise showed that growth alone isn't enough when spending keeps climbing alongside it. A Texas campus would add years of elevated capital outlays on top of an already record budget.
U.S. Fabs Still Trail Taiwan's Best Chips by a Generation
American fab deployments remain at least one generation behind Taiwan's domestic leading-edge production.
Taiwan's review rules require TSMC to maintain its most advanced production at domestic sites. Shareholders benefit from geographic diversification, but the highest-value chips — and the fattest margins — will still be made in Taiwan for the foreseeable future. The Oct. 15 earnings call will be the first chance for management to address whether Dallas is real, and what it costs.