Musk says his companies will build and run Terafab chip plant, rules out TSMC role
In short
Elon Musk said on Oct. 7 that his companies will independently build and operate the Terafab chip manufacturing project in Texas, ruling out an operational role for TSMC. He said TSMC could lease part of the planned site or capacity if interested, but nothing more. Musk also denied a report that SpaceX is slowing data center construction, saying it is accelerating.
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Elon Musk said on Oct. 7 that his companies will independently build and operate the Terafab chip manufacturing project in Texas, ruling out an operational role for Taiwan Semiconductor Manufacturing Co. (TSMC), according to business outlets CLS and Jiemian and tech outlet IT Home. Musk said in a post on X that there is “no doubt” the factory will be built and run by his companies, IT Home reported. [ 1 , 2 , 3 ]
Musk said TSMC could lease part of the planned site or capacity if it is interested, but would have no further involvement. “If TSMC is willing, it could perhaps sublease part of Terafab, but that’s all,” Musk said in a reply to a video on his social platform, CLS reported. CLS said Musk had recently said he was in talks with TSMC, and that the only matter currently under consideration was a possible lease of part of the planned factory area. [ 1 , 2 , 3 ]
CLS said Terafab is part of Musk’s plan to enter chip manufacturing, aimed at meeting the needs of Tesla and SpaceXAI. IT Home described the project as located in Texas and said recent reports had said TSMC was exploring participation. [ 1 , 2 ]
IT Home also reported that Musk denied a report by The Information that SpaceX is changing its data center construction approach and may slow the pace of new facilities. Musk said: “Wrong, we are accelerating.” [ 2 ]
Why it matters
Musk’s plan to enter chip manufacturing is aimed at meeting the needs of Tesla and SpaceXAI, according to CLS. By ruling out an operational role for TSMC, Musk keeps the project entirely within his companies, though a possible lease would still tie the chipmaking leader to the Texas site. The denial of the SpaceX data center report suggests Musk is pushing ahead with related infrastructure.
Key facts
- Musk said his companies will independently build and operate the Terafab chip manufacturing project in Texas. [ 1 , 2 , 3 ]
- Musk ruled out TSMC taking an operational role in Terafab. [ 1 ]
- Musk said TSMC could lease part of the planned site or capacity if interested, but nothing more. [ 1 , 2 , 3 ]
- Terafab is part of Musk’s plan to enter chip manufacturing, aimed at meeting the needs of Tesla and SpaceXAI. [ 1 ]
- Musk earlier said he was in talks with TSMC, then clarified on X on Wednesday. [ 1 ]
- Musk denied a report by The Information that SpaceX is changing its data center construction and may slow new facilities, saying “Wrong, we are accelerating.” [ 2 ]
Confirmed by several sources
Still unclear
- Whether TSMC was in talks to participate in Terafab, and at what stage. Based on unconfirmed reports cited by the outlets; Musk’s posts only address a possible lease.
- The scope, investment, capacity and timeline of the Terafab project. Not stated in the documents.
- What “SpaceXAI” refers to in the description of Terafab’s intended users. Only mentioned in one document; other outlets do not clarify.
- Musk’s denial of The Information report on SpaceX data centers. Single-source claim from IT Home; no further details provided.
What local media are saying
Timeline, local time
- CLS publishes Musk’s statement that his companies will independently build and operate Terafab, ruling out an operational role for TSMC. [ 1 ]
- IT Home publishes Musk’s response, including his denial of The Information report on SpaceX data centers. [ 2 ]
- Jiemian publishes its report on Musk’s statement. [ 3 ]