Musk confirms discussions with TSMC to build Terafab wafer fab

Musk confirmed that he is discussing cooperation with TSMC to build a Terafab wafer fab. (Reuters)

[Compiled by Wei Guojin/Taipei Report] Tim Culpan, a former Bloomberg columnist and founder of independent media Culpium, broke the news that TSMC is evaluating cooperation with Musk to assist him in his Terafab fab project in Texas. In response to this rumor, Musk said, "It's only in the discussion stage, but maybe things will make progress."

X user Whole Mars Catalog (@wholemars) retweeted the revelation and said, "It would be interesting if this was true." Musk himself responded below the post, "Just discussions, but something may come of it."

People familiar with the matter pointed out that TSMC is evaluating cooperating with Musk to build the Terafab wafer fab and becoming a core customer of TSMC's new campus in Texas. The project will be jointly invested by Tesla, SpaceX and xAI. The first-phase investment will reach US$16.8 billion, and the potential total investment can reach up to US$119 billion. The goal is to achieve an annual output of 1 terawatt (TW) of artificial intelligence computing power.

Bloomberg recently reported that TSMC is evaluating the construction of a second large-scale production base in the United States, possibly near Dallas. This plan will further expand TSMC’s presence in the United States in addition to the US$265 billion it has committed to building its Arizona factory.