Taiwan Semiconductor Manufacturing Co. Could Expand In North Texas

Another semiconductor industry power player is reportedly eyeing North Texas' Silicon Prairie for its next chip fabrication plant. 

Taiwan Semiconductor Manufacturing Co.'s Fab 5 building in Taiwan.
Taiwan Semiconductor Manufacturing Co.'s Fab 5 building in Taiwan

Sherman has been identified as the leading candidate to score Taiwan Semiconductor Manufacturing Co.’s next massive fabrication facility, which could bring an investment of $120B, the Dallas Business Journal reported. State documents the DBJ obtained say TSMC locating its next facility in Sherman would make the most sense.   

Those documents indicated an unnamed semiconductor manufacturer is seeking sites in Texas for a $45B investment in the construction of two plants. However, Bloomberg reported earlier this month that TSMC was considering the Dallas-Fort Worth area for as many as six semiconductor facilities that would each carry a $20B price tag. 

TSMC⁠ CEO C.C. Wei said during an Oct. 15 earnings call that the company’s U.S. customers have requested it expand beyond its existing fabrication facility in Phoenix.

“We are moving full speed ahead to increase our capacity to meet our assessed demand and stepping up our capex investment to support our customers' future growth,” Wei said. “TSMC is expanding at an unprecedented pace with nearly 20 fabs worldwide in progress.”

Central Texas is also being considered for TSMC's semiconductor expansion, the Austin Business Journal reported.

Sherman, a city around 60 miles north of Dallas, has become the centerpiece of North Texas' Silicon Prairie push. It has lined up more than $40B in investments in massive semiconductor plants from Texas Instruments, GlobalWafers and Coherent.

The city’s abundant land and prodigious water supply have been key to its success in attracting semiconductor plants, which is why the Grayson County municipality is seen as the leading candidate for TSMC's expansion.

“I think the water that they have [in Sherman] is the only location in our market that I'm aware of that has the volume in capacity to feed that type of engine,” North Texas land broker Rex Glendenning told the DBJ.

Sherman officials said the city hasn’t been contacted about TSMC's planned expansion. 

Fort Worth has also had success in attracting more companies connected to the semiconductor industry in recent years.

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