By The Epoch Times | Created at 2026-10-15 19:46:33 | Updated at 2026-10-15 20:44:08
1 hour ago
Taiwan Semiconductor Manufacturing Co. (TSMC) is evaluating Texas for additional U.S. chip production and has confirmed discussions about potentially using manufacturing capacity at Elon Musk’s planned Terafab semiconductor complex.
TSMC Chairman and CEO C.C. Wei disclosed the developments during the company’s third-quarter earnings conference on Oct. 15, saying major American customers have been requesting more U.S. manufacturing capacity.
“Texas is one. We send the teams to Texas to do all the evaluation,” Wei said, referring to locations outside Arizona under consideration.
He separately confirmed discussions about Terafab, a semiconductor manufacturing project involving Musk’s SpaceX and Tesla.
“We are still in discussion. If we have any solid conclusion, we will share with you,” Wei said.
TSMC has not announced a Texas investment amount, selected a site, or disclosed a construction timetable.
Expansion Beyond Arizona
TSMC’s consideration of Texas comes as the Taiwanese chipmaker continues expanding its manufacturing operations in Arizona.
Its planned Arizona investment has reached $265 billion, covering six semiconductor manufacturing plants, two advanced packaging facilities, and a research and development center.
The company’s first Phoenix plant began high-volume production in late 2024, while the second is targeting production in the second half of 2027.
TSMC reported third-quarter revenue of $46.72 billion, up 41.2 percent from a year earlier, supported by strong demand for advanced chips.
The company maintained its projected capital spending of $60 billion to $64 billion for 2026 as it works to expand production capacity.
Terafab Talks and Operational Control
On Aug. 6, Texas Gov. Greg Abbott announced that SpaceX planned to build Terafab in Grimes County, northwest of Houston.
The project’s first phase involves more than $16.8 billion in planned investment and is expected to create 3,000 jobs, according to the governor’s office. Texas also offered SpaceX a $30 million grant.
Musk acknowledged discussions with TSMC in an Oct. 3 post on X.
“Just discussions, but something may come of it,” he wrote.
On Oct. 7, Musk said his companies would build and operate Terafab. He added that TSMC might sublease part of the complex, but would have no larger role in its operation.
Intel is already involved in the project. SpaceX disclosed in a Securities and Exchange Commission filing that Intel joined Terafab in April and is expected to contribute expertise in chip design, manufacturing, and advanced packaging.
The filing also states that SpaceX and Tesla have agreed on a general framework for Terafab, but specific projects, timelines, and spending commitments remain subject to separate negotiations.
Asked during the Oct. 15 earnings conference whether TSMC would operate any facility developed through its discussions with Terafab, Wei said the arrangement had not been determined.
“It’s not either way, it would be possible, but the fab has to be run by TSMC,” he said.
