Generalized H2 (GH2) stability analysis and controller design of the uncertain discrete-time Takagi-Sugeno (T-S) fuzzy systems with state delay are studied based on a switching fuzzy model and piecewise Lyapunov function. GH2 stability sufficient conditions are derived in terms of linear matrix inequalities (LMIs). The interactions among the fuzzy subsystems are considered. Therefore, the proposed conditions are less conservative than the previous results. Since only a set of LMIs is involved, the controller design is quite simple and numerically tractable. To illustrate the validity of the proposed method, a design example is provided.