Taiwan Semiconductor Manufacturing Co. (TSMC) confirmed it is discussing a potential role in SpaceX’s new Terafab chip plant in Texas. On a recent earnings call, TSMC CEO C.C. Wei said the talks are ongoing and that any manufacturing facility involving TSMC must be operated by TSMC.
That condition conflicts with SpaceX CEO Elon Musk’s previous statement that SpaceX would build and run the facility itself. Terafab is intended to supply advanced semiconductors to Musk’s ventures, including SpaceX, Tesla and xAI. The negotiations will determine the nature of the partnership between the two companies.