TSMC in Talks to Join Musk's Texas Terafab AI Chip Project
TSMC confirmed it is discussing participation in Elon Musk's Texas AI semiconductor project, with CEO CC Wei saying the company must operate the factory in any deal.
TSMC has confirmed it is in talks about participating in Terafab, an AI semiconductor production project in Texas proposed by Elon Musk, according to aitimes.com. The company's chairman and CEO, CC Wei, disclosed the discussions on the October 15 earnings call.
Wei said TSMC is reviewing the possibility of expanding US production capacity beyond Arizona, and that Texas is one option under evaluation. A working team has been dispatched to Texas for assessment, he said.
Any cooperation would hinge on one condition, according to Wei: TSMC insists it must operate the factory. He did not disclose a specific cooperation structure or the scale of any investment.
The talks come as TSMC reported record quarterly net profit for Q3 2026, its sixth consecutive record quarter. Revenue rose 41.2% year over year to $46.72 billion, while net profit rose 68.7% to about $23.9 billion.
TSMC guided Q4 revenue to $52.3–54.3 billion and raised its 2026 annual revenue growth outlook to about 44%.
Background
Musk has proposed that his company directly operate the Terafab facility while TSMC leases part of the cleanroom space. The project may use Intel's 14A process technology. TSMC's second Arizona fab is scheduled to complete construction and begin mass production in Q3 2027, and the company has said it plans to draft its 2027 business plan carefully due to macroeconomic uncertainty and rising component prices.
Quick answers
What is Terafab?
Terafab is an AI semiconductor production project in Texas proposed by Elon Musk. TSMC has confirmed it is in talks about participating.
What did TSMC CEO CC Wei say about the Texas project?
On the October 15 earnings call, Wei said TSMC is reviewing US capacity expansion beyond Arizona, with Texas as one option, and that a working team has been sent to Texas. He said TSMC must operate the factory in any cooperation arrangement.
How did TSMC perform in Q3 2026?
TSMC reported revenue of $46.72 billion, up 41.2% year over year, and net profit of about $23.9 billion, up 68.7% — a sixth consecutive record quarter. It guided Q4 revenue to $52.3–54.3 billion.