AI-rewritten: This is a summary of an article from Tom’s Hardware, rewritten by AI (Qwen, running locally) to make it easier to read. The facts come from the original article – read it for the full story.

---

C.C. Wei, chief executive and chairman of TSMC, confirmed on Thursday that the company is considering expanding its American production capacity beyond Arizona and Texas. During an earnings call with financial analysts and investors, Wei stated, "We expanded our capacity consideration to see outside Arizona, whether we can get another chance to expand our capacity." He added that Texas is one option they are evaluating after sending teams there for evaluation.

Wei also confirmed negotiations regarding the usage of Terafab, a project associated with Elon Musk. While recent reports indicated talks between Musk’s Terafab and TSMC over using the giant semiconductor production facility together, Wei stressed that any involvement requires TSMC to manage the fab. This condition automatically excludes "burgers and cigars" in the cleanroom. When asked if TSMC would become a part of the Terafab project, Wei replied, "We are still in discussion," noting that if they join, the facility must be run by TSMC.

TSMC reported revenue of $46.72 billion for the third quarter of 2026, up 41.2% year-over-year and 16.2% sequentially. Net income reached approximately $23.9 billion, an increase of 68.7%, driven by elevated demand for chips used by AI infrastructure. The company’s gross margin was 66.4%. For the fourth quarter of 2026, TSMC expects revenue between $52.3 billion and $54.3 billion, representing approximately 14% sequential growth at the midpoint.