TSMC, the world's largest contract chipmaker, is considering Texas as the site for its second U.S. fabrication plant, WFAA reported on Wednesday.

The Taiwan-based foundrier already operates its first U.S. facility in Arizona. A Texas site would mark the company's second American manufacturing footprint and one of the largest semiconductor investments in the state's history if it proceeds.

Why a second fab matters

TSMC builds the advanced processors that power devices from Apple, Nvidia, AMD and Qualcomm. Its manufacturing decisions ripple through the entire electronics supply chain, because a fab (a semiconductor fabrication plant) takes years and billions of dollars to build.

What does this change for U.S. chip supply? Potentially a lot. A second domestic plant would add American capacity at a moment when Washington is pushing hard for onshore manufacturing of critical semiconductors, reducing reliance on Taiwanese production lines.

Texas as a contender

Texas has been courting semiconductor manufacturers aggressively. The state offers:

• Large tracts of available industrial land
• An established energy infrastructure
• A growing semiconductor cluster, anchored by Samsung's existing presence and Texas Instruments' operations
• State-level incentive programs aimed at chipmakers

WFAA did not report specific sites under consideration, a projected investment figure, or a construction timeline. TSMC has not confirmed a decision.

The Arizona precedent

TSMC's Arizona project gives observers a template for what a Texas build-out might involve. The Arizona facility required tens of billions of dollars in committed capital, thousands of construction workers and a multi-year ramp toward volume production. Any Texas plant would likely follow a similar scale and timeline.

The company has faced hurdles stateside before, including disputes over labor costs and staffing during the Arizona build. Those lessons would shape negotiations and planning for a second site.

What comes next

No announcement has been made. Site selection for fabs typically involves months of evaluation covering water supply, power availability, workforce pipelines and state incentive packages. Industry watchers expect TSMC to clarify its U.S. expansion plans once due diligence on candidate locations concludes.

For chip buyers and supply-chain planners, the signal is clear either way: TSMC is weighing deeper U.S. commitment, and Texas is on the shortlist.