Elon Musk confirmed on October 3rd that his Terafab project and Taiwan Semiconductor Manufacturing Co. (TSMC) are discussing a potential chip manufacturing collaboration in Texas. The news follows earlier reports that TSMC was exploring ways to support Terafab’s planned semiconductor factories.
The talks remain preliminary. The companies have announced no formal agreement, investment details or production timelines.
Reported options include Terafab becoming an anchor customer for a new TSMC-owned factory in Texas, or TSMC providing manufacturing technology and operational expertise to a Terafab facility. Separately, TSMC is reportedly considering a major new Texas campus, independent of its existing Arizona projects.