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Elon Musk Says His Companies Will Build and Run Terafab, Ruling Out TSMC Operational Role

ai-technology · 2026-10-05

On Wednesday, Elon Musk announced that his companies will be responsible for the construction and operation of Terafab, a semiconductor fabrication plant being established in Texas, with no involvement from Taiwan Semiconductor Manufacturing Co. (TSMC). In a post on his social media platform X, Musk emphasized that the only topic being discussed with TSMC is a potential sublease of part of the site, stating, "if they want, but nothing more than that." This clarification followed earlier talks with TSMC. Bloomberg reported that Intel Corp. is collaborating with Musk's firms on the facility's technology. Terafab aims to produce advanced semiconductors for Tesla Inc. and SpaceXAI, which includes Musk's space ventures and the xAI group. TSMC is also considering a new chipmaking campus in Texas, as reported last week.

Key facts

  • Elon Musk said on Wednesday that his companies will build and operate Terafab in Texas
  • Musk ruled out any operational role for Taiwan Semiconductor Manufacturing Co. at the facility
  • Musk said the only matter under consideration with TSMC is a potential sublease of part of the planned site
  • Intel Corp. is partnering with Musk's companies on the underlying technology, per Bloomberg
  • Terafab is intended to supply advanced semiconductors for Tesla's carmaking and robotics operations and for SpaceXAI
  • TSMC did not respond to a request for comment, according to Bloomberg
  • TSMC is separately weighing a new chipmaking campus in Texas, Bloomberg reported last week
  • TSMC's major customers include Nvidia Corp. and Apple Inc., and Texas already hosts a Samsung Electronics Co. plant in development

Entities

Artists

  • Elon Musk
  • Lip-Bu Tan
  • C.C. Wei

Institutions

  • Terafab
  • Taiwan Semiconductor Manufacturing Co.
  • TSMC
  • X
  • Intel Corp.
  • Tesla Inc.
  • SpaceXAI
  • xAI
  • Grok
  • Nvidia Corp.
  • Apple Inc.
  • Samsung Electronics Co.
  • Bloomberg
  • Intel
  • Tesla
  • SpaceX
  • Taiwan Semiconductor Manufacturing Co (TSMC)
  • Nvidia

Locations

  • Texas
  • United States
  • Taiwan
  • Arizona

Sources