TSMC is exploring expansion in Texas to augment its U.S. manufacturing footprint amid surging AI chip demand.

Wei warned that consumer and price-sensitive end markets face challenges from higher component prices and macro uncertainties, prompting prudent planning for 2027.

In the third quarter, TSMC posted net profit of 763.1 billion New Taiwan dollars (about $24 billion) and revenue of 1.49 trillion New Taiwan dollars (about $46 billion), up 69% and 51% year over year respectively.

TSMC raised capex guidance for 2026 to $60 billion–$64 billion, up from $52 billion–$56 billion, signaling intensified investment in capacity and capabilities.

CEO C.C. Wei said demand far exceeds current supply and that the company is working to narrow the gap, with a focus on strengthening the U.S. semiconductor industry, supply-chain resilience, and high-tech job creation.

The Texas investment is part of a broader plan to spend about $265 billion to expand U.S. semiconductor manufacturing, with an additional $100 billion announced in July, raising the total U.S. investment.

TSMC is in talks about a potential role in Elon Musk’s Terafab chip manufacturing complex in Texas, though any factory would remain under TSMC’s control if built by the company; Musk said his firms could build/operate it with TSMC possibly leasing part of the facility.

Teams have been dispatched to Texas to assess investment opportunities, extending the company’s expansion beyond its Arizona-focused push.

TSMC manufactures more than 90% of the world’s most advanced chips and counts Apple and Nvidia among its customers, driven by AI computing needs that are fueling industry-wide expansion.