Elon Musk reportedly confirmed preliminary discussions with TSMC about a possible role in Terafab, a proposed chipmaking project intended to supply Tesla, SpaceX and xAI. The talks were described as preliminary, with no finalized agreement reported as of October 5–6, 2026.
What the reported Terafab arrangements could involve
The reported scenarios outline different ways the companies might share ownership, funding and operating responsibilities. In one, TSMC could own and operate a facility, while SpaceX or Terafab might provide investment, commit to buying chips, or do both.
Another scenario would give SpaceX a majority stake, with TSMC contributing a smaller investment, manufacturing-process technology and operational expertise. These are possible arrangements, not agreed terms.
Tesla, SpaceX and xAI are named as intended users of Terafab chips. The reporting does not describe them as having committed to purchases.
Intel and TSMC could have different technical roles
One reported alternative would use Intel technology to manufacture chips and have TSMC handle advanced packaging—the assembly of chip components into a finished package. Intel 14A was mentioned as a possible process for Terafab, but that designation does not establish a production allocation.
Texas was mentioned as a possible site
Texas was identified as a possible location for a factory complex linked to TSMC and Terafab. The location remains part of the reported scenario, rather than a confirmed project decision.
