Musk Draws a Line Around Terafab Faizan Farooque Wed, October 7, 2026 at 11:11 AM EDT TSM -1.96% TSLA -1.34% SPCX -2.20% 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's proposed Terafab might see Tesla Inc. (TSLA, Financials), the electric-vehicle and technology business, partner with Taiwan Semiconductor Manufacturing Co., but one thing Musk is making plain is that his companies seek to keep the reins.Musk on Wednesday pushed back on suggestions that the future chip plant may be owned and operated by TSMC. Musk claimed on X that they will build and manage the fab, and TSMC might sublease part of Terafab, but nothing more than that.The explanation follows Musk's confirmation of talks with TSMC about a potential partnership only days ago. The discussions have sparked suspicion that the world's largest contract chipmaker might play a far bigger role in the project. Musk's new statements reduce the chance.Owning and running Terafab would give Tesla and SpaceX more influence over the supply of semiconductors as their AI aspirations boost demand for powerful computer gear. But, there are high financial needs and execution risk to start a chip-making enterprise.TSMC's involvement may still bring manufacturing knowledge without asking Musk's firms to relinquish control of the plant. But the source did not give details about investment, manufacturing capacity or how tasks may be allocated.The next trigger will be if discussions with TSMC lead to a formal agreement and what role the chipmaker finally plays inside Terafab.
