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Elon Musk confirms discussions with TSMC about Terafab chipmaking collaboration
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TSMC and Elon Musk's Terafab semiconductor production initiative are discussing a potential collaboration under which TSMC would build and operate a facility that will exclusively serve Elon Musk's Tesla, SpaceX, and xAI companies, according to Tim Culpan’s Culpium newsletter on Friday.
Key facts
- TSMC and Elon Musk's Terafab semiconductor production initiative are discussing a potential collaboration under which TSMC would build and operate a facility that will exclusively serve Elon Musk's
- For now, Intel is to supply its 1.4nm-class 14A process technology to Terafab, which would produce chips for Elon Musk's SpaceX, Tesla, and xAI
- One thing to certainly keep in mind is that Elon Musk barely wants Terafab to become a foundry that competes against Intel Foundry, Samsung Foundry, or TSMC
- The proposed 'Plan A' arrangement could resemble TSMC's JASM and ESMC joint ventures in Japan and Germany, where local partners provide capital and demand while TSMC contributes process technology
Summary
"discussions, but something may come of it," Musk wrote in an X post, while TSMC has so far remained tight-lipped. Under the arrangement Culpan considers most probable, TSMC would own and operate the new semiconductor production facility, while SpaceX/Terafab could invest in the venture, commit to buying a guaranteed volume of chips, or combine both approaches. The proposed 'Plan A' arrangement could resemble TSMC's JASM and ESMC joint ventures in Japan and Germany, where local partners provide capital and demand while TSMC contributes process technology and operates the fabs. The development certainly raises questions about Intel's role in Terafab.