TEXAS — Taiwan Semiconductor Manufacturing Co. is evaluating a possible investment in Texas as the world’s largest contract chipmaker considers further expansion of semiconductor manufacturing in the United States, according to two people familiar with the matter.

The Texas proposal remains under consideration and has not been finalized. The sources spoke anonymously because they were not authorized to discuss the plans publicly.

Any investment in Texas would be separate from TSMC’s existing and planned operations in Arizona, where the company has committed $265 billion toward semiconductor manufacturing facilities. TSMC did not immediately respond to a Reuters request for comment.

In July, TSMC announced an additional $100 billion investment in Arizona, increasing its previously announced U.S. investment there to $265 billion.

Chief Executive C.C. Wei said at the time that the expansion could include probably four or more additional fabrication plants, covering both front-end and back-end manufacturing.

TSMC’s Arizona plans are eventually expected to encompass 12 fabrication and advanced-packaging facilities, as well as a research and development center.

The possible Texas investment comes as semiconductor manufacturing has emerged as a major area of industrial investment in the United States. TSMC has previously said it plans to continue expanding its manufacturing operations in the country.

Chief Financial Officer Wendell Huang told Reuters in July that the company remained committed to further U.S. investment.

TSMC is already building a significant semiconductor manufacturing presence in Arizona, making the potential Texas project another possible expansion of its American operations. However, the sources stressed that the company has not made a final decision on the Texas plans.

The company’s expansion is closely monitored because of TSMC’s central position in global semiconductor manufacturing. Its facilities produce chips used across the technology industry, while its U.S. investments have become an important part of efforts to increase domestic semiconductor production.

For now, the Texas proposal remains under evaluation and has not been confirmed as a project.

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