Musk says Terafab-TSMC tie-up remains at discussion stage, with possible outcome

Musk says Terafab-TSMC tie-up remains at discussion stage, with possible outcome

N
News Editor
2026-10-03 08:43:24
Elon Musk said on X that reports about a partnership between his chip company Terafab and Taiwan Semiconductor Manufacturing Co. are still at an early stage. According to Musk, the two sides have only held discussions so far, though he added that those talks may yet lead to something. Musk had earlier said the Terafab project would be jointly operated by Tesla and SpaceX and based in Austin. He described the project as targeting 1 terawatt of computing capacity per year, with most of that capacity required for space-related use. The project’s initial investment was put at $16.8 billion. His latest comments stop short of confirming any formal agreement with TSMC, but they do indicate that contact between the parties has taken place.

Elon Musk said on X that rumored cooperation between his chip company Terafab and Taiwan Semiconductor Manufacturing Co. (TSMC) has only reached the discussion stage so far, though he added that the talks may still produce a result.

Musk had previously said the Terafab project would be jointly operated by Tesla and SpaceX and located in Austin. He said the project is aimed at reaching 1 terawatt of computing capacity per year, with most of that capacity required for space-related use. The initial investment for the project was set at $16.8 billion.

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