TSMC Weighs Multibillion-Dollar Texas Campus for AI Chips
TSMC is considering a new campus in Texas consisting of multiple fabs, each costing at least $20 billion. This comes as the company evaluates its overseas expansion plans, according to sources familiar with the matter, as reported by Bloomberg.
Currently, TSMC has a significant presence in North America, having committed $265 billion to build ten fabs, two packaging plants, and a research center there. The decision for the new Texas campus hinges on Congress extending a 35% manufacturing tax credit, which requires construction to commence by December. Senators Mike Crapo and Ron Wyden have expressed commitment to securing this extension.
In contrast, TSMC's European project, a joint venture in Dresden, Germany, is budgeted above €10 billion. This plant, set to begin production in 2029, will manufacture 40,000 wafers monthly but will not specialize in AI chips, running several generations behind nodes used by Nvidia and Apple.
The cost of a single Texas fab would be approximately double the investment for the Dresden project. Texas already hosts Samsung's chip complex, Musk's Terafab, and an expansion from Texas Instruments. TSMC had also considered Singapore as an alternative site.
The European semiconductor industry aims to capture 20% of the global market by 2030, a goal that currently seems unlikely. The EU has already provided €5 billion in state aid for a power chip fab in Dresden, marking the first success for the EU's semiconductor support program.
TSMC intends to maintain its most advanced research facilities in Taiwan, regardless of its foreign investments. The key question for Europe is whether it will be included in the selection process for the next campus expansion.