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TSMC Sherman Texas collage: TSMC's Arizona fab campus under construction beside the Grayson County Courthouse in Sherman

Is TSMC Coming to Sherman, Texas? What We Know So Far

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Not yet. As of Oct. 30, 2026, Taiwan Semiconductor Manufacturing Co. (TSMC) has not announced a plant in Sherman, Texas. What exists is a report from the Dallas Business Journal, republished by WFAA on Oct. 30. It says state documents show an unnamed international company weighing a possible $45 billion investment in two advanced chip plants in Texas, with about 5,000 jobs over six years, and that Sherman “seems to be the frontrunner.” The documents point to a location decision as early as November and production starting in the fourth quarter of 2029. TSMC declined to comment beyond its CEO’s Oct. 15 remark that the company “sent teams to Texas to do all the evaluation.”

So the honest answer to “is TSMC coming to Sherman?” is that it could be. TSMC Sherman Texas talk is now backed by state paperwork and reporting, but no company, city or state official has confirmed it. Below is what is on the record, what is reported, what is still a guess, and what a project this size could mean for neighbors in Howe, Gunter and Denison. For everything else under construction in town, see our Sherman development tracker.

What’s confirmed, what’s reported and what’s still a guess

  • Confirmed by TSMC: On its Oct. 15 earnings call, CEO C.C. Wei said TSMC is exploring Texas for expansion. “We sent teams to Texas to do all the evaluation,” he said, according to a Business Journals report carried by WFAA. The Associated Press also reported that TSMC is exploring Texas. Wei did not name a city.
  • Reported from state documents: The Dallas Business Journal says documents it obtained show an international company scouting Texas for a potential $45 billion, two-fab project with 5,000 jobs over six years. A decision could come as early as November, with production targeted for late 2029. As described, the documents do not name the company.
  • Reported from unnamed sources: The Business Journal says Sherman is the frontrunner. Its Austin edition adds that sources said Central Texas is also under consideration but the Dallas area is preferred.
  • Earlier reports: On Sept. 28, Taiwan’s Economic Daily News reported that TSMC was weighing a second U.S. hub of as many as six advanced fabs with Dallas as a possible location (summary via TrendForce). On Oct. 1, Bloomberg reported a possible Texas campus of several plants costing at least $20 billion each. Bloomberg said the plans were early and depended on Congress extending a federal advanced-manufacturing tax credit set to expire at the end of this year.
  • Not public yet: No announcement from TSMC, the governor’s office, the City of Sherman or the Sherman Economic Development Corp. No site, acreage or address. No Sherman-area project appears on the Texas Comptroller’s list of active JETI incentive projects.
Aerial view of TSMC's Fab 21 campus under construction in Phoenix, Arizona, with cranes and fab buildings
TSMC’s Phoenix campus under construction in November 2023. WFAA notes that the Phoenix site opened in 2025 and is already being expanded. Image source: Hunter Trick via Wikimedia Commons (CC BY-SA 4.0)

One detail is easy to miss. The $45 billion, two-fab figure and the “up to six fabs” figure describe different things. The first comes from Texas paperwork about an unnamed company. The second is a Taiwanese newspaper’s account of TSMC’s long-range thinking. Both could be true, both could change, and neither is a signed deal.

Why Sherman keeps coming up

Sherman already makes chips. Texas Instruments started production at SM1, its first new 300-millimeter fab in Sherman, on Dec. 17, 2025. TI says the Sherman site could hold four fabs, SM1 through SM4, with up to $40 billion of investment and as many as 3,000 TI jobs. The campus covers about 1,200 acres off U.S. 75 near Shepherd Road, according to the Dallas Business Journal. Gov. Greg Abbott announced TI’s Sherman pick in November 2021, so a project like this has gone through the state before.

Right next door, GlobalWafers opened the first phase of its Sherman silicon wafer plant in 2025. The Sherman Economic Development Corp.’s annual report says GlobalWafers CEO Doris Hsu announced another $4 billion for the Sherman site at the ribbon cutting. That report also lists SEDCO marketing Sherman at the Taiwan Expo USA in Dallas and recruiting the city’s first semiconductor supplier.

The workforce is already in place. In October, KTEN reported that Sherman’s semiconductor employers were recruiting in neighboring Fannin County, with Texas Instruments saying it was focused on hiring equipment and process technicians.

TSMC Fab 18 chip plant buildings in the Southern Taiwan Science Park
TSMC’s Fab 18 in the Southern Taiwan Science Park, May 2025. Image source: 4300streetcar via Wikimedia Commons (CC BY 4.0)

Water: the question Sherman is already working on

Chip plants use a lot of water, and Sherman has spent the last few years building for it. In May 2025, KXII reported that two major industrial customers were using about 2 million gallons a day, roughly one-fifth of the city’s daily use. The city’s upgrades include the Lake Texoma pump station, the water treatment plant, a pipeline to the industrial area and a $288 million industrial wastewater plant. All were scheduled to finish in 2026.

In April 2025, the Herald Democrat reported that Sherman was moving ahead with nearly $600 million in water and sewer work, with SEDCO setting aside up to $11 million (via SEDCO). “Neither GlobalWafers nor TI would have been able to come in here without them doing that, and there were some surprise costs along the way,” SEDCO President Kent Sharp said. City spokesperson Nate Strauch told KXII that one piece, a 36-inch pipeline, runs 11 miles from the treatment plant to TI.

How much water a two-fab project would need, and who would pay for any new capacity, hasn’t been made public. If you live in Gunter, your tap water comes from a different system. Mustang Special Utility District serves Gunter, and it has been on one-day-a-week watering since June 2025 (see our Gunter TX utilities guide).

Water flowing over the Lake Texoma spillway at Denison Dam on the Texas-Oklahoma border
Sherman pumps raw water from Lake Texoma, and the city has been expanding that pump station for industrial demand, according to engineering firm Freese and Nichols. Image source: Wikimedia Commons (public domain)

Roads, housing and schools: what neighbors are asking

Roads. TI’s campus sits on U.S. 75 at Sherman’s south end, the same highway Howe residents take north and Denison residents take south. Another chip employer would put more shift traffic on that stretch. Nobody has published a traffic study because nobody has published a site. For the county’s existing road-funding gap, see why Grayson County is growing so fast. Gunter’s main route south is SH 289, as our Gunter commute guide explains.

Housing. Sherman grew about 20% from 2020 to July 2025, to 52,417 people, according to U.S. Census Bureau estimates (Vintage 2025). Five thousand new jobs would add demand in a market that is already building fast. Where those workers would live, and at what price, is an open question for Sherman, Howe, Denison and Gunter.

Schools. Sherman ISD is still building campuses from its $540 million 2023 bond (see the Sherman tracker), and Howe and Gunter are growing too. If a project is announced, watch for the school district paperwork described below. It is the first place enrollment and tax effects tend to show up in writing.

The Grayson County Courthouse in downtown Sherman, Texas, with Texas and U.S. flags
The Grayson County Courthouse in Sherman, where county incentive items would come up for a vote. Image source: Larry D. Moore via Wikimedia Commons (CC BY 4.0)

What would make it official

Big chip projects leave a paper trail before the ribbon cutting. If this one is headed to Sherman, these are the signs to look for:

  • An announcement from TSMC itself, or a joint announcement with the governor’s office like the one for TI in 2021.
  • A tax abatement notice from the City of Sherman. For TI’s second phase, the city posted its notice at least 30 days before the council vote. It named the company, the reinvestment zone and the estimated cost.
  • Any Grayson County commissioners court agenda item tied to the project.
  • A school-district tax limitation application under the state’s JETI program. The Comptroller is required to post each application on its website.
  • Action in Congress on the advanced-manufacturing tax credit that Bloomberg said the Texas plan depends on.

Until one of those shows up, treat TSMC in Sherman as a strong possibility, not a done deal. For the countywide picture, keep our Grayson County development tracker handy.

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