Elon Musk confirmed on October 7, 2026 that Tesla and SpaceX will build and operate the Terafab AI chip factory themselves, leaving Taiwan Semiconductor Manufacturing Co (TSMC) with no operational role. TSMC could potentially sublease a portion of the Grimes County, Texas facility. Intel has confirmed its role as the technology partner, supplying its 14A process node. The project, with a first-phase investment of $16.8 billion, aims to deliver one terawatt of annual AI computing capacity to meet the chip needs of Tesla, SpaceX, and xAI.
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