TSMC mulls multibillion-dollar Texas campus for more AI chips

TSMC's exploration of additional overseas facilities, including the potential Texas campus and discussions with Singapore, reflects the intense demand for AI hardware. This expansion strategy follows the company's commitment to facilities in Arizona, Japan, and Germany, indicating a broader dispersal of its manufacturing capabilities beyond Taiwan to serve global customer needs.

The proposed Texas investment, which could involve multiple fabrication plants each costing at least US$20 billion, is reportedly dependent on the extension of a US advanced-manufacturing tax credit. This highlights the critical role of government incentives and policy support in shaping TSMC's decisions regarding the scale and location of its international capital expenditures.

While TSMC's business from North America accounts for over 75 percent of its wafer revenue this year, the company's engagement with Singaporean officials points to its ongoing assessment of diverse locations. Singapore's existing semiconductor infrastructure and status as an Asia-Pacific hub for AI developers present it as a viable option for TSMC's continued growth to meet customer demand.