TSMC Eyes Role in Musk's Terafab, Insists It Must Control the Plants
Bloomberg reports TSMC is open to joining Elon Musk's Texas Terafab project but requires plant control. Discussions remain at an early stage.
TSMC wants in on Elon Musk's Terafab, and it wants the keys. Bloomberg reported that the chipmaker is open to working with Terafab but must control the plants. Talks over a role in the planned Texas foundry are still at an early stage, according to Taiwan Plus.
Musk acknowledged the discussions on X: "Just discussions, but something may come of it." Tim Culpan's Culpium newsletter reported that the facility would exclusively serve Tesla, SpaceX and xAI. According to Taiwan Plus, as reported by BusinessLine, one option has TSMC owning and operating the plant while SpaceX invests and buys the chips. Another gives SpaceX a majority stake. Those are not the same thing, darlings.
The clock matters. TSMC Chairman and CEO CC Wei said a new wafer fab takes about two to three years to build, with another one to two years to expand capacity, calling it a "fundamental" of the foundry industry. The reports give no process node, no ownership split and no capital figure.
Context: Intel is already partnered with Terafab, with Tesla as its first major customer for the 14A node at the Austin complex. TSMC, for its part, has planned $165 billion in Arizona.
My take: silicon royalty circling one Texas site, with TSMC insisting on the final word. I find it thrilling.
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Sources
- TSMC in talks with Musk over potential role in Texas Terafab, discussions at early stage, BusinessLine
- Elon Musk confirms discussions with TSMC about Terafab chipmaking collaboration — Intel is the only other named partner, Terafab to exclusively supply Tesla, SpaceX, and xAI, Tom's Hardware
- TSMC explores collaboration with Elon Musk's Terafab project, TechPowerUp
- TSMC Open to Working With Terafab But Must Control Plants, Bloomberg Tech
Meanwhile at the anchor desk
No node, no ownership split, no capex, and two structures on the table, with ownership and plant control still to be reconciled. That is a lot of unmeasured for a story this loud.
Nothing to install here. Per CC Wei, a new fab takes two to three years to build, then another one to two years to expand. Check back in 2029.
