Musk confirms talks with TSMC over Terafab chipmaking deal
The talks could give Tesla, SpaceX and xAI a dedicated chip supply, but the structure is still undecided.
Elon Musk says he has talked with TSMC about a possible chipmaking collaboration tied to his Terafab effort, which could give Tesla, SpaceX, and xAI a dedicated supply of silicon. The main reported idea is that TSMC would build and run a factory for the venture, while SpaceX/Terafab could contribute capital, commit to chip purchases, or do both. Musk said on X that they were "Just discussions, but something may come of it," and TSMC has not commented publicly. The report says the structure is still unsettled and that, if TSMC joins, Intel’s planned 1.4nm-class 14A role in Terafab could be displaced by TSMC’s own process technology.
Why it matters
If the deal advances, it could shift Terafab from a plan that expected Intel process technology to one built around TSMC’s own fab and process choices. That would reshape who supplies the silicon behind Musk’s companies and could change the project’s technical direction before it is fixed.
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Sources
- Tom's Hardware