Elon Musk Confirms TSMC Talks for Texas-Based Chip Manufacturing Project
Elon Musk confirmed on October 3 that discussions are underway with Taiwan Semiconductor Manufacturing (TSMC) regarding the involvement of its technology in Terafab, a chip manufacturing project planned by his companies in Texas. This follows earlier reports from Culpium suggesting TSMC was exploring ways to support the initiative. Intel has been previously named as the sole public partner for this venture since April 2026. Intel's role in Terafab appears limited and not binding, with no disclosed financial terms or long-term commitments. The project is part of a broader $16.8 billion investment plan for its first stage in Grimes County, Texas. While Intel has been associated with the initiative using its 14A manufacturing process, recent developments suggest TSMC could potentially replace it as the primary chipmaker. Terafab's potential partnership with TSMC highlights a shift that may impact Intel’s foundry business, which is still building credibility in making chips for external clients. The project remains speculative at this stage but has already influenced stock prices slightly.
Topics: Elon Musk Intel Taiwan Semiconductor Manufacturing (TSM) Terafab Texas chip manufacturing