❯ Musk confirms talks with TSMC on Terafab, saying “just discussions, but something may come of it”

A one-line confirmationResponding on X on October 4 to the reports, Musk said: “Just discussions, but something may come of it.” Independent outlet Culpium had earlier reported that TSMC was exploring cooperation with his chip manufacturing project Terafab. According to Hardware Busters, TSMC has not commented.

Two optionsCulpium considers the most likely option to be TSMC owning and operating the factory. The alternative is SpaceX keeping majority ownership with TSMC providing operational expertise, which also leaves room for Intel. Until now, Intel’s 14A process was the only manufacturing partner Terafab had named.

For three in-house companies onlyTerafab is in Grimes County, Texas, about 100 kilometers northwest of Houston, with an initial budget of $16.8 billion. It is planned as an integrated site covering design, fabrication, packaging and test, with output going exclusively to Tesla, xAI and SpaceX. There is no timeline, contract or dollar figure.

Intel's position shiftsIf TSMC takes over operations, the “first big customer” Intel was counting on becomes less certain, while TSMC gains a Texas fab with a clear outlet for its capacity. Musk’s restrained wording suggests the talks are still early.

▪ SIGNALSomeone building his own chip plant going back to the leading foundry to talk shows that experience in advanced processes is harder to buy than capital.