TSMC Reportedly Considers US$45 Billion Fab Expansion in Sherman, Texas, Escalating Rivalry With Samsung
Taiwan Semiconductor Manufacturing Co. (TSMC) is reportedly moving closer to selecting Sherman, Texas, as the site of its second major U.S. manufacturing hub, a development that could significantly intensify its competition with Samsung Electronics in the American semiconductor market.
According to ETNews, citing the Dallas Business Journal, Sherman in Grayson County has emerged as a leading candidate in discussions with TSMC regarding a semiconductor investment potentially worth tens of billions of dollars.
State economic development documents referenced by WFAA and the Dallas Business Journal describe a proposed US$45 billion project by an unnamed semiconductor company. The plan reportedly includes the construction of two fabrication plants, the creation of roughly 5,000 jobs over six years, and the start of production by late 2029. While TSMC has not been officially identified as the investor, industry reports suggest the company is the most likely candidate.
If the project proceeds, TSMC would establish a major presence much closer to Samsung's existing U.S. semiconductor operations. Sherman is located approximately 300 kilometers from Samsung’s manufacturing campuses in Taylor and Austin, Texas. Beyond competing for leading AI chip customers, the two companies could find themselves vying for skilled engineers, construction talent, utility resources, and government incentives aimed at attracting advanced semiconductor investments.
Samsung is also expanding its footprint in Texas. Reports indicate the company has begun installing production equipment at its Taylor foundry facility, with chip production expected to begin in 2027. The company is also reportedly evaluating additional capacity investments and plans to start construction on a second Taylor fabrication plant by the end of 2026, targeting mass production in 2030.
Northern Texas Supply Chain Strengthens Sherman’s Appeal
TSMC has confirmed it is evaluating expansion opportunities in Texas, although a final site has not yet been selected. During its October 15 earnings call, CEO C.C. Wei said the company had dispatched teams to assess potential locations following requests from major U.S. customers seeking additional domestic manufacturing capacity.
Sherman’s growing semiconductor ecosystem could further enhance its attractiveness. The region is quickly developing into a strategic semiconductor hub, supported by a growing network of Taiwanese suppliers and partners.
Texas Instruments is investing up to US$40 billion in four 300mm semiconductor fabrication plants in Sherman. Nearby, Taiwan-based GlobalWafers operates a multibillion-dollar 300mm silicon wafer facility that could provide local wafer supply for future chip production. In addition, semiconductor testing specialist KYEC is investing approximately US$1.3 billion in a new facility in Fort Worth, its first U.S. operation, which will support testing for NVIDIA AI chips.
With an established supply chain, access to critical infrastructure, and proximity to key industry players, Sherman is increasingly being viewed as a compelling location for what could become one of the largest semiconductor investments in the United States.
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