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Elon Musk shuts down talk of TSMC taking over Terafab

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Elon Musk shuts down talk of TSMC taking over Terafab

Elon Musk has drawn a firm line around who will be in charge of Terafab, the giant chip factory Tesla and SpaceX are planning in Texas.

Musk replied to a post on X arguing that Taiwan Semiconductor Manufacturing Company (TSMC) would most likely end up owning and operating the plant. “No, we will build and run the fab. Let there be ZERO doubt about that,” Musk wrote. “Maybe TSMC subleases part of the Terafab if they want, but nothing more than that.”

In plain terms, a sublease means TSMC could rent a section of the complex to make chips, similar to a tenant renting one floor of an office tower. The building, the equipment decisions and the daily operation would stay with Tesla and SpaceX.

@herbertong @thejefflutz No, we will build and run the fab. Let there be ZERO doubt about that.

Maybe TSMC subleases part of the Terafab if they want, but nothing more than that.

The comment shuts down speculation that started last week. On October 2, tech journalist Tim Culpan reported that TSMC was exploring ways to help run Terafab’s factories. Musk responded the next day that it was “just discussions, but something may come of it,” as Teslarati reported at the time. That left room for a scenario where the world’s largest contract chipmaker took the wheel. Musk’s latest post closes that door.

Some background helps explain why this matters. Tesla designs its own AI chips today but pays outside companies like TSMC and Samsung to manufacture them.


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