TSMC in talks with Elon Musk for Texas Terafab chip project

Terafab semiconductor manufacturing TSMC Intel Elon Musk

Elon Musk has confirmed that early-stage discussions are underway regarding TSMC's potential participation in Terafab, a massive semiconductor manufacturing project in Texas. Terafab is a joint initiative between SpaceX and Tesla designed to produce custom chips for AI, robotics, and spacecraft, with a target annual capacity of 1 terawatt.

Intel, which has been the only named partner for the project, is currently slated to provide its 14A manufacturing process. The news of potential TSMC involvement caused immediate market volatility: TSMC's US ADR shares reached a record high of $485.80, while Intel's stock saw declines of approximately 2% to 2.6% as investors weighed the possibility of Intel being displaced or reduced to a secondary role.

The Texas-based project, located in Grimes County, has an initial estimated investment of $16.8 billion, though total costs could eventually reach $119 billion. Proposed partnership structures include TSMC owning and operating the facility with Terafab as a primary customer, or a model where SpaceX holds a majority stake while TSMC provides technical and operational expertise.

Entities

Elon Musk · Intel · SpaceX · TSMC · Tesla · xAI

Claims

What the coverage asserts, and how many sources carry each claim.

[● 3 SOURCES] Intel is currently a named partner for Terafab, with plans to provide its 14A manufacturing process. www.fool.com · keeptrack.space · tinhte.vn
[● 3 SOURCES] The Terafab project is a joint semiconductor manufacturing initiative by SpaceX and Tesla located in Grimes County, Texas. www.imaeil.com · www.fool.com · technews.bg
[● 3 SOURCES] The initial investment for the Terafab project is estimated at $16.8 billion, with total costs potentially reaching $119 billion. www.imaeil.com · technews.bg · www.notiulti.com
[● 3 SOURCES] The project aims to produce 1 terawatt of chip capacity annually for use in AI, robotics, and spacecraft. www.imaeil.com · www.tfmedia.co.kr · technews.bg
[● 8 SOURCES] Elon Musk confirmed early-stage discussions regarding TSMC's potential involvement in the Terafab project. www.imaeil.com · www.tfmedia.co.kr · www.fool.com · keeptrack.space · www.notiulti.com · +3 more
[● 4 SOURCES] Intel shares fell approximately 2% to 2.6% following the reports of potential TSMC involvement. www.imaeil.com · www.tfmedia.co.kr · www.fool.com · www.financial-news.co.uk
[● 3 SOURCES] TSMC's US ADR shares rose 2.75% to a record closing price of $485.80 following the news. www.imaeil.com · www.tfmedia.co.kr · www.notiulti.com
[DISPUTED] One discussed structure involves TSMC owning and operating the Texas facility while Terafab acts as a primary customer. www.imaeil.com · technews.bg · www.devdiscourse.com