The demand creates a standoff with Musk, who previously stated his businesses would independently build and operate the 'Terafab' complex, limiting TSMC to a potential sublease of the site. The project aims for 1 TW of annual compute production and a cycle of 10 chip designs per year to serve Tesla, SpaceX, and xAI. Intel has already partnered with the Texas project, providing its 14A process technology to support Musk's hardware requirements.
Tuesday, October 20, 2026
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TSMC Demands Operational Control of Musk Terafab Site in Project Clash
Tech6 days ago
Chief Executive Officer C.C. Wei announced that TSMC will only participate in Elon Musk's Texas semiconductor venture if the foundry is granted full governing authority over the plants. The Taiwanese chipmaker is currently weighing a new Texas campus that would add tens of billions of dollars to its existing $265B investment in Arizona, provided the company manages the resulting facilities.
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