Stories
Taiwan Chipmaker TSMC Explores Texas Investment to Expand US Production
- •Taiwan Semiconductor Manufacturing Co. is exploring potential investments in Texas to expand its chip production in the United States following record quarterly profits driven by strong artificial intelligence demand.
- •TSMC reported a record net profit of 763.1 billion new Taiwan dollars for the July-September quarter, up 69 per cent from the previous year.
- •Chairman and CEO C C Wei confirmed that TSMC teams are evaluating Texas as an option for expansion and are open to collaborating with Elon Musk's planned Terafab complex, provided TSMC runs the plant.
- •TSMC has already pledged 265 billion USD in investments for building plants in Arizona as it works to narrow the gap between high customer demand and current supply capabilities.
- •The company cautioned that macroeconomic challenges and rising component prices are impacting consumer and price-sensitive market segments, prompting prudent business planning for 2027.
Key Questions Answered
TSMC has pledged a total of USD 265 billion in investments to build chip manufacturing plants in the United States, including a USD 100 billion commitment made in July and previous commitments totaling USD 165 billion for facilities in Arizona.
TSMC reported a record net profit of 763.1 billion new Taiwan dollars, which is nearly USD 24 billion, representing a 69 percent increase from the previous year driven by strong artificial intelligence demand.
TSMC is exploring a potential investment and collaboration with Elon Musk's planned "Terafab" semiconductor complex in Texas. While TSMC teams have evaluated the site and discussed participation, CEO C C Wei stressed that any plant in Texas must be run by TSMC, whereas Musk stated that his side would build and run the fab with TSMC potentially subleasing part of it.
