TSMC is open to working on Musk’s Terafab, but only if it runs the fab

TSMC is talking to Elon Musk about Terafab, his sprawling chip fabrication project in Texas. The world’s most important chipmaker has one condition: it wants to be the one running the factory. What TSMC actually said On its Q3 2026 earnings call on October 15, TSMC confirmed it is in active discussions about collaborating on Terafab. Chairman and CEO C.C. Wei made clear that any chip fabrication facility involved would need to be operated by TSMC itself. That framing directly contradicts what Musk posted on X on October 7. He wrote that SpaceX would “build and run the fab,” adding that TSMC’s role, if it had one at all, would be no more than a subleasing arrangement. SpaceX will “build and run the fab.” — Elon Musk, via X The talks first surfaced publicly around October 2-3, following initial reporting by Tim Culpan. At the time, Musk described the discussions as preliminary, while suggesting they could lead somewhere significant. Market speculation about TSMC’s potential role in running Terafab has periodically moved the company’s share price. What Terafab is supposed to be Terafab is a joint effort led by Tesla and SpaceX, with elements from xAI also involved. Its goal is an adva...