Elon Musk has made it clear that Tesla and SpaceX will retain control of their massive Terafab semiconductor project in Texas, ruling out any scenario in which Taiwan Semiconductor Manufacturing Company (TSMC) takes over the plant.
The clarification follows reports that TSMC was exploring a potential partnership with Musk’s companies, including an arrangement that would give the Taiwanese chipmaker responsibility for operating the plant.
Replying to an X user who predicted TSMC would end up running the plant, Musk left little room for interpretation.
“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.”
The comments narrow Musk’s earlier response on October 3, when he confirmed discussions with TSMC, saying, “Just discussions, but something may come of it.”
While a partnership remains possible, Musk’s latest statement suggests TSMC’s involvement would be limited to occupying part of the facility rather than controlling its operations.
That could matter for Intel, which joined the project in April. Reuters noted that a bigger TSMC role could challenge Intel’s place in Terafab. Speaking to Bloomberg in Tokyo on October 7, CEO Lip-Bu Tan said Intel will remain part of the project.
Terafab is being developed in Grimes County, Texas, with an initial investment of US$16.8 billion and plans to create approximately 3,000 jobs. The project could eventually reach as much as US$119 billion if all four planned phases are built, according to its Texas tax-incentive filings.
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