TSMC demands operational control in Terafab talks

• TSMC (NYSE:TSM) confirmed ongoing discussions regarding potential collaboration on Elon Musk's Texas-based Terafab chip project.
• Chief Executive Officer C. C. Wei insisted TSMC must operate any fabrication plant involved in the proposed partnership.
• The Terafab facility aims to supply advanced semiconductors to Tesla (NASDAQ:TSLA) and SpaceXAI for robotics and AI development.

TSMC (NYSE:TSM) has entered into discussions regarding potential collaboration on Elon Musk's Terafab project while maintaining that it must operate any semiconductor plant in an alliance.

The dialogue follows recent statements from the Tesla (NASDAQ:TSLA) chief executive asserting that external chipmakers would only lease capacity rather than control manufacturing operations.

"We are still in discussion, let me say that, but the fab has got to be run by TSMC," said TSMC Chief Executive Officer C. C. Wei.

US chipmaker Intel (NASDAQ:INTC) is currently assisting Musk's companies with technology development for the Texas-based facility.

The planned Terafab facility is designed to supply advanced semiconductors to support electric vehicle production, robotics, and the Grok artificial intelligence project at SpaceXAI.

Neither company has specified finalized terms for the potential arrangement beyond confirming that strategic discussions remain ongoing.