Musk says TSMC won't run Terafab AI chip complex (updated)

Intel

07/10/2026 08:37

Rewrites with Musk comments, details
Oct 7 (Reuters) - Tesla TSLA.O and SpaceX SPCX.O CEO Elon Musk said on Wednesday that his companies will build and run the Terafab AI chip complex, with TSMC 2330.TW possibly subleasing a part of it.

Here are more details:
Terafab is a planned Tesla-SpaceX project in Texas that aims to build "a gigantic chip fab" to make artificial intelligence chips.
Replying to a post on X that said the most likely outcome was TSMC owning and running the fab, Musk wrote: "No, we will build and run the fab. Let there be ZERO doubt about that."
"Maybe TSMC subleases part of the Terafab if they want, but nothing more than that," he added.
Last week, Musk said that there had been discussions about potential cooperation with TSMC on the Terafab project, without giving further details.
Earlier on Wednesday, Intel CEO Lip-Bu Tan told Bloomberg News that the US chipmaker, which is a partner in the project, will remain involved.
Any involvement by TSMC could challenge Intel's role in Terafab, as Musk weighs partners for the chipmaking venture.
TSMC and Intel did not immediately respond to requests for comment.


 (Reporting by Disha Mishra and Shivani Tanna in Bengaluru; Editing by Janane Venkatraman)
 ((Disha.Mishra@thomsonreuters.com))