Musk Tried to Buy Chip Plants From Intel, TSMC and Micron Before Terafab

Acquisition attempt came up empty

According to a report from Korean outlet The Elec, Elon Musk tried to buy existing manufacturing facilities before launching his chip project, Terafab. Musk reportedly approached Intel, TSMC and Micron with offers but received no takers.

After that effort, Musk shifted to building partnerships with suppliers rather than acquiring plants outright.

Production targets

Industry observers expect Terafab to reach initial production of 100,000 wafers per month before 2030. The project's long-term ambition is the one million wafers per month figure Musk has cited.

A wafer is the silicon disc on which chips are fabricated; monthly wafer counts are a standard measure of a fab's capacity.

Suppliers surprised by pace

The report says the speed of execution at Terafab has surprised many suppliers. Giving engineers decision-making authority is cited as one factor behind that pace.

Why it matters

As demand for AI hardware grows, chip manufacturing capacity has become a critical bottleneck. Musk turning to partnerships instead of buying fabs shows just how constrained that capacity is.