TSMC Weighs Singapore Plant and Ties Texas Deal to US Tax Credits

The chipmaker's latest expansion plans include a potential venture into Southeast Asia to diversify manufacturing. TSMC is assessing a new site in Singapore and has made the viability of its proposed $20 billion investment in Texas contingent on the US government extending an advanced-manufacturing tax credit that expires at the end of 2026.

The envisioned Texas campus would feature multiple fabrication plants, supplementing the $265 billion the company has already committed to a hub in Arizona. This multiyear growth strategy aims to scale US semiconductor production to meet long-term demand for AI chips and increase capacity for fabrication equipment.