Musk confirms TSMC talks over his Terafab chip plant

That report came from Tim Culpan’s newsletter Culpium, which says the most likely outcome is TSMC owning and operating the new plant, with other forms of cooperation also under discussion. Culpium reports that nothing has been signed. Musk wrote: “Just discussions, but something may come of it.” Culpan writes that he knew of the plans for about six weeks and held the story until more sources backed it.

Terafab is Musk’s project to make chips for his own companies’ AI and robotics work, and DIGITIMES describes it as a venture backed by both SpaceX and Tesla. The plan Culpium describes would make it the operator of a plant built for a single group of customers.

For buyers of AI compute, the talks show the largest chip users weighing factories of their own, with TSMC as a possible operator.