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Musk Says Tesla and SpaceX Will Build and Operate Terafab AI Chip Complex

By Fiona Craig | October 07, 2026, 6:11 AM

Tesla (NASDAQ:TSLA) and SpaceX (NASDAQ:SPCX) Chief Executive Elon Musk said the companies will build and operate the planned Terafab artificial intelligence chip manufacturing complex in Texas, while TSMC (NYSE:TSM) could potentially sublease part of the facility.

Terafab is a planned joint Tesla-SpaceX project intended to establish a large-scale semiconductor manufacturing facility for artificial intelligence chips.

Responding on X to a post suggesting that TSMC was likely to own and operate the facility, Musk said: “No, we will build and run the fab. Let there be ZERO doubt about that.”

He added: “Maybe TSMC subleases part of the Terafab if they want, but nothing more than that.”

Musk said last week that discussions had taken place regarding potential cooperation with TSMC on the Terafab project, without providing further details.

Intel Says It Will Remain Involved in Terafab

Intel Chief Executive Lip-Bu Tan told Bloomberg News earlier on Wednesday that Intel (NASDAQ:INTC), which is a partner in the project, will remain involved in Terafab.

The companies have not provided details on how any potential involvement by TSMC would be structured alongside Intel’s existing participation in the project.

TSMC and Intel did not immediately respond to requests for comment.

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