Musk says TSMC won't run Terafab AI chip complex

October 7, 2026 1:13 AM EDT

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

Oct 7 (Reuters) - 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.

(Reporting by Disha Mishra and Shivani Tanna in Bengaluru; Editing by Janane ‌Venkatraman)



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