TSMC targets Sherman Texas for $45B twin-fab advanced chip hub

Taiwan Semiconductor Manufacturing Co. evaluated Sherman, Texas on Nov. 5, 2026 as the primary candidate site for a $45 billion manufacturing hub outside Arizona.

The proposed project covers two advanced wafer fabrication facilities and 5,000 jobs over six years, according to Texas economic development planning documents.

That $45 billion outlay represents roughly 70% of the $65 billion TSMC committed to its three-fab complex in Phoenix, Arizona.

TSMC Chairman and CEO C.C. Wei told analysts on Oct. 15 that the foundry had dispatched site inspection teams to Texas.

Major American technology customers asked the contract chipmaker to broaden its domestic manufacturing footprint beyond Phoenix, Wei said during the company's third-quarter earnings call.

The capital expenditure plan would draw on TSMC's expanded 2026 investment budget, which the company raised to between $60 billion and $64 billion.

Sherman sits 65 miles north of Dallas in Grayson County, positioning the prospective campus inside an expanding north Texas semiconductor corridor.

The municipality already hosts major manufacturing investments from foundational chipmakers and upstream material suppliers.

Texas Instruments operates a $40 billion mega-site in Sherman designed for up to four 300mm wafer fabrication plants.

The analog semiconductor specialist began commercial production at its first Sherman facility, SM1, in late 2025 to manufacture tens of millions of foundational chips daily.

GlobalWafers operates a multibillion-dollar 300mm silicon wafer plant in Sherman that supplies raw material to domestic fabrication lines.

That colocation would allow TSMC to secure raw wafer feedstock locally, reducing logistics overhead for high-volume manufacturing lines.

Downstream testing infrastructure is also expanding nearby in Fort Worth, where King Yuan Electronics Co. is investing $1.3 billion in chip testing facilities.

The geographic diversification reflects strategic pressure on TSMC to avoid single-site operational bottlenecks in Arizona.

Labor shortages, trade union disputes and construction delays slowed initial cleanroom installation at TSMC's Fab 21 in Phoenix throughout 2023 and 2024.

By adding Texas to its manufacturing base, TSMC can tap a distinct regional power grid and industrial labor pool.

The prospective entry also reshapes competition with Samsung Electronics across the central Texas technology belt.

Samsung Electronics operates its long-standing Austin foundry campus and is constructing a $44 billion manufacturing and advanced packaging site in Taylor, Texas.

The South Korean chipmaker plans to ramp advanced two-nanometer production and high-bandwidth memory base dies at Taylor to win American artificial intelligence accelerator contracts.

A TSMC production hub in Sherman would compete directly against Samsung for regional engineering talent, utility allocations and municipal tax incentives.

Intel also maintains advanced packaging and foundry operations across New Mexico and Oregon while pursuing joint development arrangements in Texas.

Federal backing remains a critical component of overseas semiconductor construction economics across the United States.

TSMC secured $6.6 billion in direct grant funding and up to $5 billion in loans under the 2022 CHIPS and Science Act for Arizona.

Any additional site development in Texas would require TSMC to negotiate fresh municipal property tax abatements and supplemental state incentive packages.

Texas development officials established a site selection review window that could conclude as early as late November 2026.

Target schedules detailed in regional project filings project ground preparation by 2027 and initial commercial volume production in the fourth quarter of 2029.

The Texas state records do not identify TSMC by name, referring only to an unidentified global semiconductor manufacturer.

TSMC has not published a regulatory disclosure with the Taiwan Stock Exchange or the US Securities and Exchange Commission confirming Sherman as an approved capital allocation.

Discussions concerning operational control also remain unresolved between TSMC and commercial partners evaluating independent manufacturing projects in the state.

Wei reiterated on Oct. 15 that TSMC will only participate in manufacturing projects where it retains full operational and operational management control.

Grayson County commissioners and Sherman municipal authorities will conclude preliminary infrastructure and zoning assessments on Nov. 24, 2026.