Musk confirms Terafab talks

Elon Musk has confirmed that discussions are underway with TSMC for Terafab, a chip manufacturing facility planned for Tesla, SpaceX and xAI. The move signals that Intel's critical role in the project could change.

What's happening?

Musk said his companies are in contact with TSMC regarding Terafab. Intel had previously been expected to play a key part in the project, but a possible deal with TSMC could shift those plans.

Why it matters

Terafab aims to produce chips needed for Musk's companies' AI and autonomous systems. As the world's largest chipmaker, TSMC could significantly affect the project's speed and capacity. For Intel, the risk is losing a strategic partnership.