Elon Musk confirms Tesla and SpaceXAI will build and operate their own AI chip fabrication plants

Elon Musk has firmly rejected suggestions that Taiwan Semiconductor Manufacturing Co could take control of Terafab, stating that Tesla and SpaceX will build and operate the planned Texas facility. While TSMC could potentially sublease part of the complex, it will not take control of the wider operation, Musk clarified.

In comments posted on X on Wednesday, Musk directly disputed a post suggesting TSMC, the world's largest contract chipmaker, was the most likely candidate to own and operate the proposed facility. "No, we will build and run the fab. Let there be ZERO doubt about that," he wrote.

The proposed complex is intended to manufacture artificial-intelligence chips for Tesla and SpaceX. While Musk has previously described the project as a major chip fabrication operation in Texas, the companies have not disclosed a detailed production timetable or the full structure of the planned facility.

Musk indicated last week that discussions had taken place with TSMC about possible cooperation on Terafab, though he did not specify what form that collaboration might take. Intel also appears positioned to retain a role. Intel chief executive Lip-Bu Tan told Bloomberg News on Wednesday that the US chipmaker would remain involved in the venture, having already been considered a potential technology partner as Musk explores how to develop the facility.

For Musk, Terafab represents a strategic effort to secure greater control over the advanced computing hardware needed for artificial intelligence applications. Tesla is developing AI systems for its vehicles and robotics ambitions, while SpaceX has substantial computing requirements of its own. Whatever partnerships emerge, Musk intends Tesla and SpaceX to retain operational control of the chipmaking project, though the precise roles of Intel, TSMC and any other participants remain subject to further discussions.