# TSMC Eyes Texas Expansion As AI Chip Demand Surges

> TSMC explores Texas for AI chip expansion amid rising demand.
- Title: TSMC Eyes Texas Expansion As AI Chip Demand Surges | Shortify
- Summary: TSMC explores Texas for AI chip expansion amid rising demand. TSMC is evaluating Texas for a potential expansion into Elon Musk's Terafab complex as AI chip…
- Keywords: tsmc, texas, ai chip demand, terafab, elon musk, semiconductor, texas enterprise fund, space x, musk, nvidia, apple, news
- Source: Dallas Express — https://dallasexpress.com/business-markets/tsmc-eyes-texas-expansion-as-ai-chip-demand-surges-terafab-talks-confirmed
- Author: Dallas Express
- Published: 2026-10-16T13:00:19+00:00
- Read time: 1 min
- Topics: tsmc, texas, ai chip demand, terafab, elon musk, semiconductor, texas enterprise fund, space x, musk, nvidia, apple, news
## TSMC evaluates Texas expansion
Taiwan Semiconductor Manufacturing Co. sent teams to Texas to explore possible expansion as AI chip demand surges.

> Taiwan Semiconductor Manufacturing Co. confirmed October 15 that it has sent teams to Texas to evaluate a possible expansion
## TSMC discusses Terafab role
TSMC is discussing a potential role in Elon Musk's planned Terafab semiconductor complex during earnings conference.

> TSMC confirmed October 15 that it has sent teams to Texas to evaluate a possible expansion and is discussing a potential role in Elon Musk's planned Terafab semiconductor complex
## TSMC reports strong earnings
TSMC reported $46.72 billion in third-quarter revenue, up 41.2% from a year earlier, with net income climbing 68.7%.

> TSMC reported $46.72 billion in third-quarter revenue, up 41.2% from a year earlier, while net income climbed 68.7%
## Advanced chips drive revenue
Advanced manufacturing processes at 7 nanometers and below accounted for 79% of wafer revenue.

> Advanced manufacturing processes at 7 nanometers and below accounted for 79% of wafer revenue
## TSMC expects strong Q4 revenue
TSMC expects fourth-quarter revenue between $52.3 billion and $54.3 billion as AI chip demand remains strong.

> TSMC expects fourth-quarter revenue between $52.3 billion and $54.3 billion as demand for leading-edge chips remains strong
## Texas semiconductor investments
Texas approved a $30 million Texas Enterprise Fund grant for SpaceX's Terafab project with over $16.8 billion in capital investment.

> Texas approved a $30 million Texas Enterprise Fund grant for the project, which also qualified for the state's Jobs, Energy, Technology and Innovation program
## TSMC and Musk disagree on control
Musk said his companies would build and run the fab, while TSMC said any facility producing TSMC chips would need to operate under TSMC's control.

> Musk said earlier this month that his companies would build and run the fab, while TSMC said October 15 that any facility producing TSMC chips would need to operate under TSMC's control
## Texas semiconductor corridor
North Texas is building a semiconductor supply chain with Texas Instruments, Micron, and LITEON investments.

> North Texas is also attracting adjacent ai hardware manufacturing. LITEON broke ground in September on a McKinney campus tied to a planned $919 million investment and more than 600 jobs
## Key takeaway

TSMC is evaluating Texas for a potential expansion into Elon Musk's Terafab complex as AI chip demand surges.