Musk Confirms TSMC Talks for Terafab

Elon Musk confirmed on social media that he is in talks with Taiwan Semiconductor Manufacturing Co (TSMC) to build a chip factory exclusively serving Tesla, SpaceX, and xAI.

Previously, Intel was identified as the primary manufacturing partner for the Terafab initiative, supplying its next-generation 14A process technology. A shift to TSMC would mean abandoning Intel's advanced node in favor of TSMC's established foundry capabilities.

Neither company has disclosed deal structures or signed contracts. Wedbush Securities notes that this development represents a setback for Intel, as losing such a high-profile customer undermines the market validation of its new process. The item remains at the early discussion stage with no official agreement.