TSMC confirms Terafab talks, but clashes with Musk over who runs the fab
What happened? TSMC confirmed on its Q3 earnings call on October 15 that it is in talks with TerafabDealroom has a profile for this one. Try Dealroom →, the AI chip manufacturing complex being built by SpaceX and Tesla in Grimes County, Texas. It is the first time TSMC has publicly acknowledged the discussions, but chairman C.C. Wei said any fab involving TSMC would have to be operated by TSMC itself.
The clash: That puts TSMC at odds with Elon Musk, who wrote on X on October 7: "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." Intel, which joined the project in April and is expected to supply its 14A process technology, said this month it remains involved.
Context: SpaceX and Tesla announced a first phase of about $16.8B in August, with construction planned for 2026 to 2028 and production targeted for 2028. County records contemplate up to $119B across four phases. The split of ownership and investment between SpaceX and Tesla has not been disclosed.
Read more: DigiTimes · South China Morning Post · Tom's Hardware · Reuters
