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
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."
• "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.
