TSMC (TSM.US) in talks with Musk's Terafab for cooperation, but emphasizes the need to control chip production

According to Golden Ten Data, TSMC (TSM.US) is in talks with Elon Musk's Terafab project regarding potential cooperation, but the Asian chip manufacturer stressed that it must retain control over chip production in any collaboration.

When asked if the company would join Musk's chip manufacturing plan, TSMC CEO C. C. Wei stated that the company must operate its own wafer factories. Previously, Musk had said that TSMC would at most lease capacity, rather than be responsible for operations and manufacturing.

"We are still in discussions, I must clarify this," Wei told analysts during a conference call. "But the wafer fabs must be operated by TSMC."

The Terafab project, located in Texas, is Musk's attempt to enter the chip manufacturing sector and aims to serve his companies Tesla and SpaceXAI. Regarding speculation that TSMC might be involved in operations, Musk responded that his company would be fully responsible for Terafab. Both sides confirmed they are negotiating, but neither revealed any specific details.

US chip manufacturer Intel is helping Musk's companies develop the relevant technology needed for Terafab. The facility is expected to provide advanced semiconductors for Musk's business empire, covering Tesla automobile manufacturing, robotics operations, and SpaceXAI, which integrates aerospace technology and xAI. Musk emphasized that his company will "build and operate this wafer fab."