Musk says TSMC won’t run Terafab AI chip complex

Oct 7 : Tesla and SpaceX CEO Elon Musk said on Wednesday that his companies will build and run the Terafab AI chip complex, with TSMC 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


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Musk says TSMC won’t run Terafab AI chip complex

Musk says TSMC won't run Terafab AI chip complex

FILE PHOTO: Computer motherboard and Intel chip appear in this illustration taken August 25, 2025. REUTERS/Dado Ruvic/Illustration/File Photo

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Oct 7 : Tesla and SpaceX CEO Elon Musk said on Wednesday that his companies will build and run the Terafab AI chip complex, with TSMC 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.”

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• “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.

Source: Reuters

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