TSMC is considering chip production in Texas and discussing cooperation with Elon Musk's Terafab project, chairman and chief executive C.C. Wei said on October 15. Any participating factory would have to be operated by TSMC, he told investors, according to Focus Taiwan and the South China Morning Post.
Wei said teams had visited Texas to assess expansion beyond the company's Arizona base. The talks remain exploratory. Focus Taiwan reported that Musk had previously said TSMC might sublease part of Terafab, leaving the structure of any partnership unresolved.
The push responds to requests from major American customers for more production, Wei said, according to Focus Taiwan. AP reported that AI demand still exceeded TSMC's available supply. The Taiwanese chipmaker is therefore evaluating additional US capacity while discussions about a Texas role continue.
TSMC's quarterly results show revenue of $46.72 billion for July through September. Its published outlook puts fourth-quarter revenue at $52.3 billion to $54.3 billion. These figures describe company-wide sales and forecasts, rather than revenue assigned to a proposed Texas factory.
The expansion also involves newer manufacturing processes. According to Focus Taiwan, Wei expects capacity for the 2-nanometer process to more than double in 2027 from this year, driven by smartphones, high-performance computing and AI. He said nearly 20 factory projects were underway globally.
Wei also outlined trial production for the A14 process in 2027 and mass production in 2028, Focus Taiwan reported. For Texas, the immediate question remains whether talks can produce an agreement compatible with TSMC's demand to control factory operations. The reported discussions do not establish a completed Terafab deal.
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