AI news · Chips · Musk
Musk says his companies will run Terafab without TSMC
Tesla and SpaceX will build and operate the Texas chip plant, Musk says, and Intel’s chief says Intel stays on.
Elon Musk said on Wednesday 7 October 2026 that his companies will build and run Terafab, the chip plant planned in Texas, themselves. On his account Tesla and SpaceX run it and any TSMC role is limited to renting space, Automotive World reports. Musk put it this way, as Chip Briefing quotes him: “Maybe TSMC subleases part of the Terafab if they want, but nothing more than that.”
The remarks follow a week of speculation that TSMC was edging out Intel, the project’s first named partner, which began on 2 October with a report in the Culpium newsletter; Musk confirmed talks with TSMC the next day.
Hours before Musk spoke, Intel chief executive Lip-Bu Tan told Bloomberg that Intel would stay on, Automotive World reports, and Intel’s shares recovered some of their losses. In April, Intel agreed to handle design, manufacturing and packaging for the project. Automotive World notes that neither Tesla nor SpaceX has yet made a wafer.
For buyers of AI compute, Musk says Terafab will be run by his own companies; Intel remains the only named partner, though Automotive World notes its continuing role is unspecified.
Earlier on this story: Musk confirms TSMC talks over his Terafab chip plant
Sources
- Automotive World: Musk insists Terafab is his to run as Intel stays aboard. Checked
- Chip Briefing: Daily: Musk, Terafab will not partner with TSMC. Checked
Alexandre S.
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