Elon Musk confirms discussions with TSMC about Terafab chipmaking collaboration
Elon Musk has confirmed that discussions are underway between TSMC and his Terafab initiative regarding a potential semiconductor manufacturing collaboration. The proposed partnership would involve TSMC building and operating a facility exclusively for Tesla, SpaceX, and xAI, with specific ownership structures still under negotiation. While TSMC has not yet made an official statement, the talks could significantly alter the current plan for Intel to supply chips to Terafab.
- ▪Elon Musk confirmed on X that discussions are taking place with TSMC regarding a chipmaking collaboration for Terafab.
- ▪The potential deal would see TSMC build and operate a facility that exclusively serves Tesla, SpaceX, and xAI.
- ▪Intel is currently the only other named partner for Terafab, with plans to supply its 14A process technology.
- ▪Two main structural options are being considered: TSMC owning the facility or SpaceX holding majority ownership while TSMC provides operational expertise.
- ▪TSMC has remained silent on the matter, and no official agreement has been reached yet.
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| Publication time | Sat, 03 Oct 2026 14:50:50 +0000 |
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Tech Industry Manufacturing Semiconductors Elon Musk confirms discussions with TSMC about Terafab chipmaking collaboration — Intel is the only other named partner, Terafab to exclusively supply Tesla, SpaceX, and xAI News By Anton Shilov Published 3 October 2026 Musk confirms the talks, TSMC remains silent. When you purchase through links on our site, we may earn an affiliate commission. Here’s how it works. (Image credit: Tesla / SpaceX) Copy link Facebook X Whatsapp Reddit Pinterest Flipboard Email Share this article 0 Join the conversation Follow us Add us as a preferred source on Google Newsletter Subscribe to our newsletter TSMC and Elon Musk's Terafab semiconductor production initiative are discussing a potential collaboration under which TSMC would build and operate a facility that…
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