TSMC confirmed on its Q3 2026 earnings call on October 15 that it is in active negotiations with Elon Musk regarding the Terafab project in Texas. CEO C.C. Wei set one prerequisite: TSMC must operate the semiconductor factory itself. This requirement directly conflicts with Musk’s October 7 post on X stating that SpaceX would build and operate the fab, relegating TSMC to a mere subleasing role. The Terafab project, involving Tesla, SpaceX and xAI, plans a 100 million square foot facility in Grimes County with an investment of approximately $16.8 billion for the first phase targeting about 1 terawatt of annual AI computing capacity. Intel has already been a development partner since April 2026 using its 14A manufacturing process, making the control question even more critical for TSMC.
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