TSMC and Elon Musk Clash Over Texas Terafab Control
TSMC is negotiating a role in Elon Musk's proposed Texas Terafab project amid surging AI chip demand, though the two parties disagree on operational control.
Taiwan Semiconductor Manufacturing Co. is evaluating expansion opportunities in Texas to meet AI chip demand that currently exceeds its supply capabilities. During a third-quarter earnings call on October 15, 2026, the company reported a record quarterly net profit of nearly $24 billion and confirmed it has sent teams to Texas to assess the region.
Taiwan Semiconductor Manufacturing Co. is specifically discussing a role in a proposed Terafab chip manufacturing complex planned by Elon Musk. However, negotiations have hit a deadlock over operational management. CEO Che-Chia Wei insisted that any plant established in Texas "has got to be run by TSMC". In contrast, Musk stated that his organization would build and run the fab, suggesting TSMC could potentially sublease a portion of the facility.
This potential expansion follows a $265 billion investment pledge for plants in Arizona. While TSMC continues to explore the partnership to support major U.S. customers like Nvidia, no firm conclusion has been reached regarding the ownership structure or the specific scope of the company's involvement in the Texas project.
