In Pictures: Elon Musk confirms early TSMC talks for Tesla-SpaceX Terafab chip project

Terafab's ambitions hinge on the advanced chip manufacturing capacity that has made TSMC the industry's dominant contract producer.

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Musk said talks with TSMC remain preliminary and non-binding as the Terafab project takes shape.

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Intel is already signed on to the Tesla-SpaceX chip venture, with TSMC now a potential additional partner.

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The project targets more than one terawatt of AI compute production annually at full scale.

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Demand for AI-grade silicon has turned chip fabrication into a strategic battleground for tech giants.

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A TSMC partnership would give Terafab access to the world's most advanced contract chipmaking processes.

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Neither Tesla nor SpaceX has disclosed terms, timelines, or the scope of TSMC's potential role.

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Musk's confirmation follows months of speculation about who would fabricate the venture's custom AI chips.

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Intel's existing involvement gives Terafab a domestic manufacturing foothold as talks with TSMC continue.

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