Archive · 6 Oct 2026
TSMC Could Join Musk’s Terafab, Reshaping Chipmaking Plans
Elon Musk’s companies are planning a large chipmaking project in Texas called Terafab.
Tesla and SpaceX have announced an initial investment of $16.8 billion.
Musk says chipmaker TSMC could take part, but its role has not been confirmed in detail.
Intel has also said it has a role, though it has not explained what that means.
The chips could be used in Tesla vehicles and robots, and for SpaceX’s computing plans.
The project is meant to include several steps in making and testing chips.
TSMC could bring manufacturing experience, while Intel could contribute US chipmaking infrastructure.
The project may help Musk’s companies rely less on outside chip suppliers.
Elon Musk said TSMC could participate in Terafab, a planned Texas chipmaking venture backed by Tesla and SpaceX.
The project has announced an initial investment of $16.8 billion and plans to employ at least 3,000 people.
Intel has acknowledged a role in Terafab, but has not specified what it will do.
Terafab is intended to cover chip production, memory, advanced packaging and testing for Musk’s companies.
TSMC’s possible involvement follows its US expansion; the article says it has committed $265 billion to Arizona and is considering a Texas campus.
- Who
- Elon Musk, Tesla, SpaceX, TSMC and Intel.
- What
- TSMC could participate in Terafab, a planned semiconductor manufacturing project.
- When
- The articles describe the development as recently emerging; no specific date is given.
- Where
- Grimes County, Texas, United States.
- Why
- Terafab is intended to provide chips for Musk’s companies and expand their control over semiconductor supply.
- Project
- Terafab, a planned semiconductor facility backed by Tesla and SpaceX.
- Location
- Grimes County, Texas.
- Initial investment
- $16.8 billion announced.
- Planned workforce
- At least 3,000 people.
- Potential total spending
- Could reach as much as $119 billion across project phases.
- Intel's role
- Intel has acknowledged a role but has not disclosed its precise scope.
- TSMC's involvement
- Musk said TSMC could participate; the extent of any role was not specified.
- TSMC Arizona commitment
- The article says TSMC has committed $265 billion to its Arizona expansion.