Musk confirms TSMC talks over Terafab, the Tesla–SpaceX AI chip fab in Texas
On Oct 3, 2026 Elon Musk confirmed on X that his Terafab chipmaking project is in talks with TSMC ("Just discussions, but something may come of it"), after Tim Culpan's Culpium reported that TSMC was exploring ways to work with Terafab, possibly by owning and operating the fab. Terafab is the Tesla–SpaceX project for a giant Texas fab making AI chips only for Musk's companies.
Key facts
- Musk's reply on X (Oct 3, 2026): 'Just discussions, but something may come of it' (~690k views by Oct 4, fxtwitter)
- Culpium (Tim Culpan, Oct 2) reported that TSMC was exploring a collaboration; Culpan wrote that 'the most likely scenario is for TSMC to try to own and operate the new factory'. Culpium also reports that the Intel collaboration on Terafab is 'not making progress' and that most Terafab hires so far are ex-Intel staff
- Reuters (Sept 30, citing two people familiar) reported that TSMC was weighing an additional investment in Texas, separate from its ~$265B Arizona build-out; no decision was made and TSMC declined to comment
- Background: Terafab was announced on March 21, 2026 in Austin; Intel joined in April with its 14A (1.4 nm) process chosen for the full-scale fab (Wikipedia, citing Electrek and Reuters)
- Site: the former Gibbons Creek power station in Grimes County, Texas; Tesla and SpaceX committed ~$16.8B to the first phase (Aug 2026); state filings list construction from Dec 1, 2026 to end-2028 (Austin American-Statesman)
- Stated long-term goal: 1 million wafer starts per month and 100–200 billion custom AI and memory chips a year, supplying only Tesla, SpaceX and xAI (Wikipedia; Tom's Hardware)
- No agreement, investment or timeline has been announced by TSMC
What happened
Tim Culpan's newsletter Culpium reported on Oct 2 that TSMC was exploring ways to work with Terafab, two days after Reuters reported that TSMC was weighing a Texas investment beyond Arizona. Asked about the report on X, Musk answered: "Just discussions, but something may come of it." Culpan's follow-up says the Intel partnership announced in April is not making progress.
Why it matters
Terafab is Musk's attempt to make his own AI chips at a huge scale for Tesla (Optimus, Cybercab), SpaceX (planned space data centers) and xAI. Bringing in TSMC, the leading foundry, would make the plan far more credible than building leading-edge capacity from scratch, and it would give TSMC its first US site outside Arizona. Nothing is agreed yet.
Changelog
- 2026-10-04: created (sweep; Musk post ~690k views)
Related posts (1)
- Elon Musk confirms Terafab–TSMC talks: 'Just discussions, but something may come of it' original ↗ Elon Musk @elonmusk · x · 2026-10-03
First-hand confirmation (~690k views) that TSMC and Musk's Terafab AI-chip fab project are in talks.
Sources (8)
- officialElon Musk on X: 'Just discussions, but something may come of it'
- pressCulpium: Elon Musk confirms TSMC-Terafab talks
- pressCulpium: Exclusive — TSMC exploring plans to work with Terafab
- pressTom's Hardware: Elon Musk confirms discussions with TSMC about Terafab
- pressReuters (via WTVB): TSMC evaluates potential Texas investment, sources say
- pressTesla North: Elon Musk confirms TSMC talks for $16.8B Texas Terafab project
- pressAustin American-Statesman: Elon Musk, SpaceX confirm $16.8B Terafab facility in Texas
- discussionWikipedia: Terafab
id: 2026-10-03-musk-confirms-tsmc-terafab-talks · updated 2026-10-04 · open in the interactive timeline