Elon Musk rules out wider TSMC role in Texas Terafab, says his companies will build and run facility

Tesla and SpaceX CEO Elon Musk has said Taiwan Semiconductor Manufacturing Co. (TSMC) could potentially sublease only a portion of the proposed Texas Terafab, making it clear that his companies would retain control over the facility's construction and operations.

Tesla and SpaceX CEO Elon Musk has said Taiwan Semiconductor Manufacturing Co. (TSMC) could potentially sublease only a portion of the proposed Texas Terafab, making it clear that his companies would retain control over the facility's construction and operations. Responding to a post on X about ongoing discussions between TSMC and Musk over the chipmaking project, Musk said there should be no doubt that the Terafab would be built and operated by his companies.

“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,” Musk said. The remarks indicate possible structure of the proposed semiconductor facility in Texas, where Musk's companies are exploring the development of advanced chip manufacturing capabilities to support their growing technology and artificial intelligence requirements.

Musk's comments came after TSMC Chairman and CEO CC Wei said the Taiwanese chipmaker was in discussions over a potential role in the Texas project. Wei had indicated that the talks were still at an early stage, according to a previous Taiwan Plus report. The timing and scale of the project are likely to be important considerations. Wei said building a new wafer fabrication plant could take around two to three years, while expanding production capacity could require an additional one to two years.

Earlier reports had outlined different possible arrangements between TSMC and Musk's companies. One option under discussion involved TSMC owning and operating the Texas plant, with SpaceX investing in the project and purchasing chips produced there. Another option reportedly envisaged SpaceX taking a majority stake in the facility. Musk had previously confirmed that discussions with TSMC were underway but stressed that they remained at an early stage.

His latest statement, however, suggests that any TSMC participation could be limited to leasing a portion of the proposed facility rather than giving the Taiwanese chipmaker a broader ownership or operational role. The proposed Texas Terafab is part of Musk's broader push to secure semiconductor capacity for his companies as demand for computing power rises across artificial intelligence, autonomous systems, robotics and space technology.

The ownership structure, investment commitments and operating arrangements for the proposed facility have not yet been finalised. (ANI)