Sherman, a town in Grayson County in northern Texas, is emerging as the frontrunner to host a possible new TSMC chip factory in the United States, according to the South Korean outlet ETNews, which cites the Dallas Business Journal. Texas economic development documents describe a potential investment of $45 billion by an unnamed semiconductor manufacturer, with two factories, about 5,000 jobs over six years, and production starting in late 2029. TSMC has not confirmed either the location or the investment.
The key facts about TSMC’s possible Sherman factory in 20 seconds
- Where: Sherman, in northern Texas, is named as the frontrunner in TSMC’s talks.
- How much: state documents point to $45 billion, two factories, and production by late 2029.
- What’s missing: the documents don’t name TSMC, and the company has not chosen a location.
- Why it matters: it would sit roughly 300 kilometers from Samsung’s factory in Taylor.
The search traces back to TSMC’s third-quarter earnings presentation on October 15. Its CEO, C. C. Wei, explained at the time that the company had sent teams to evaluate possible US locations at the request of major domestic customers. Until now, TSMC’s US bet has been concentrated in Arizona, where it already manufactures chips and where it bought a second plot to expand its capacity. A new site in another state would mark a change of scale.
An Unnamed Project on Paper
It’s worth separating what is documented from what is inferred. What’s on record is that Texas has on the table a $45 billion project from an unidentified chipmaker, with two factories and about 5,000 jobs. What links that project to TSMC and to Sherman is reporting from local and South Korean media, based on unnamed sources. Other outlets describe an investment of “tens of billions,” without specifics. Neither the figure nor the location has been confirmed by the company, and the manufacturing process that would be used is not known.
The area has a case to make. In Sherman, Texas Instruments is building four 300mm wafer fabs with an investment of up to $40 billion, and Taiwan’s GlobalWafers has a nearby 300mm wafer plant that could supply a TSMC factory. Add to that a historical detail the press hasn’t overlooked: Morris Chang, TSMC’s founder, spent years working at Texas Instruments before founding the Taiwanese company. Also in Texas, chip-testing company KYEC is investing about $1.3 billion in its first US plant, in Fort Worth, to test NVIDIA AI chips.
More Pressure on Samsung in Texas
If confirmed, the decision would hit Samsung hard. Sherman is about 300 kilometers, roughly a three-hour drive, from its Taylor and Austin facilities. The competition wouldn’t just be for AI chip customers, but also for engineers and construction workers, for energy and water, and for the state’s tax incentives.
Samsung has started installing equipment at its Taylor factory and is reportedly considering expanding it, according to the South Korean agency News1. Reuters places the start of production in Taylor in 2027, and Yonhap reports that the company plans to begin building a second factory there before the end of 2026, with mass production in 2030. It’s a project that has racked up delays, as we reported when analyzing that 2nm and Texas remain unfinished business for its foundry operation. Having TSMC as a neighbor would make it harder to attract customers and staff in the same region.
Frequently Asked Questions
Has TSMC confirmed a new factory in Sherman, Texas?
No. TSMC has not confirmed the location or the investment. The link to Sherman comes from reporting by the South Korean outlet ETNews, citing the Dallas Business Journal, based on unnamed sources, not from an official company statement.
How much would the investment be, and what would it include?
Texas economic development documents describe a potential project worth $45 billion from an unnamed semiconductor manufacturer, including two factories, about 5,000 jobs created over six years, and production starting in late 2029.
Why would a TSMC factory in Sherman affect Samsung?
Sherman sits roughly 300 kilometers, about a three-hour drive, from Samsung’s Taylor and Austin facilities in Texas. A TSMC plant nearby would increase competition for AI chip customers, engineers, construction workers, energy, water, and state tax incentives.
Source: TrendForce, based on ETNews and Dallas Business Journal
This article is also available in Spanish: «TSMC estudia Sherman, en Texas, para su próxima fábrica en EE. UU.», on revistacloud.com.
