Elon Musk confirmed that discussions are underway between his Terafab chip-manufacturing project and Taiwan Semiconductor Manufacturing Co. (TSMC). Both sides say the talks are preliminary. A potential collaboration could supply chips for Musk’s ventures, including Tesla, SpaceX and xAI.
The discussions reportedly cover several possible arrangements. In one scenario, TSMC would own and operate a new fabrication plant, while Musk’s companies provide capital and commit to long-term purchase volumes. Another option would give Terafab a greater role while drawing on TSMC’s advanced manufacturing technology and operational expertise.
No final decisions have been made, and no formal agreements have been signed.