Elon Musk rules out TSMC operational role in Terafab chipmaking Quartz · Brendan SMIALOWSKI / AFP Cris Tolomia Wed, October 7, 2026 at 7:10 AM EDT 1 min read TSM -0.72% INTC -3.18% TSLA +0.51% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Elon Musk said on Wednesday that his companies will build and operate Terafab, the chipmaking facility he is developing in Texas, ruling out any operational role for Taiwan Semiconductor Manufacturing Co.
Musk made the clarification in a post on X, his social network, after he had previously said he was in discussions with TSMC. "Maybe TSMC subleases part of the Terafab if they want, but nothing more than that," he wrote, specifying that the only matter under consideration with the Taiwanese chipmaker is a potential sublease of part of the planned site.
Intel Corp. is partnering with Musk's companies on the underlying technology for the facility, according to Bloomberg. Terafab is intended to supply advanced semiconductors for Tesla Inc.'s carmaking and robotics operations and for SpaceXAI, the consolidated entity that encompasses Musk's space technology business and the xAI group behind the Grok artificial intelligence model.
TSMC did not respond to a request for comment, according to Bloomberg.
TSMC is separately weighing a new chipmaking campus in Texas, according to Bloomberg, which reported on the potential expansion last week. The company, whose roster of major customers includes Nvidia Corp. and Apple Inc., has been steadily growing its footprint in the United States. The state is already home to a Samsung Electronics Co. plant in development, and Terafab's completion would further enlarge Texas's semiconductor manufacturing base.
