TSM.US negotiates cooperation with Musk Terafab but emphasizes the need to control chip production

The Zhitong Finance App learned that TSM.US is discussing cooperation matters with Elon Musk's Terafab project, but the Asian chip maker emphasized that in any cooperation, chip production must be controlled.

When asked if he would join Musk's chip manufacturing plan, TSMC CEO Wei Zhejia said that the company must operate its own fab. Earlier, Musk said that at most, TSMC only leases production capacity and is not responsible for operation and manufacturing.

“We are still in discussions, and I must explain this,” Wei Zhejia told analysts during a conference call. “But the fab must be operated by TSMC.”

Located in Texas, the Terafab project is Musk's attempt to enter the chip manufacturing sector to serve its companies Tesla and SpaceXAI. In response to speculations that TSMC might be involved in operations, Musk responded that his company would be solely responsible for Terafab. The two sides confirmed that negotiations were ongoing, but neither revealed any specific details.

US chipmaker Intel is helping Musk's companies develop the relevant technology needed for Terafab. The facility is expected to supply Musk's commercial empire with advanced semiconductors, covering Tesla car manufacturing, robotics business, and SpaceXAI, which integrates space technology and XAI. Musk stressed that his company will “build and operate this fab.”