TSMC in talks with Terafab for chip manufacturing cooperation: Musk

TSMC: Taiwan Semiconductor Manufacturing Company is the world's largest dedicated contract chipmaker serving global clients with advanced process nodes. It is in early-stage talks with Terafab over potential cooperation on a Texas manufacturing facility where it could act as operator or technology provider. Musk's confirmation of the discussions positions TSMC as an emerging option alongside Intel for the project. Intel: Intel Corporation is a major semiconductor manufacturer offering foundry services alongside its own chip designs. It partnered with the Terafab project to supply its 14A process technology for specialized AI and computing chips. Recent confirmation of separate TSMC discussions has drawn attention to Intel's role as an existing Terafab partner. Terafab: Terafab is a Texas-based semiconductor fabrication initiative backed by Tesla, SpaceX, and xAI to produce custom AI and radiation-hardened chips exclusively for those companies. The project focuses on integrated design, wafer production, and packaging to support robotics, autonomous vehicles, and orbital data centers. Intel has been its primary named process partner, with ongoing exploration of additional foundry involvement. Elon Musk: Elon Musk leads Tesla, SpaceX, and xAI, the entities behind the Terafab chip project. He publicly confirmed that TSMC and Terafab are discussing potential manufacturing cooperation in Texas. His statement has highlighted the project's search for multiple partners to meet internal chip demand. U.S. Expansion: TSMC is evaluating a potential new Texas facility with Terafab as a possible anchor customer for future production. Partnership Exploration: Terafab is considering multiple foundry partners to advance its chip manufacturing plans in Texas.