The Terafab project aims to produce 1 TW of compute production annually, roughly 50 times the current global output of AI compute. Shares of Intel fell about 4% following the announcement, as the collaboration between Intel and Terafab has reportedly failed to make progress. TSMC has already committed $265B to expanding production in Arizona, and while the Texas talks are ongoing, Musk noted they remain in the early stages and may not materialize.
Tuesday, October 20, 2026
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Musk Confirms TSMC Partnership Talks to Power Texas Terafab
Tech15 days ago
TSMC is weighing a new chipmaking venture with Elon Musk to provide hardware for Tesla, SpaceX and xAI. Musk confirmed that the companies are in discussions regarding a partnership for his Terafab project in Texas, which would potentially establish the chipmaker as a primary supplier for his businesses. Under one considered model, TSMC would own and operate the manufacturing facility while Musk's ventures provide the anchor purchase commitments to sustain the site.
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