Elon Musk in talks with TSMC about Terafab chip factory
Elon Musk has revealed he's in talks with Taiwan's TSMC to possibly build a dedicated chip factory for his companies, think Tesla, SpaceX, and xAI.
The project, called Terafab, is all about making enough chips to supercharge AI and computing power for Musk's ambitious plans.
Terafab could produce 1 terawatt compute
Musk shared on X, "Just discussions, but something may come of it." The goal is huge: Terafab could produce 1 terawatt of compute per year, way more than what's out there now.
Two ways forward are on the table: either TSMC owns the plant with SpaceX as an investor and minimum chip purchase commitments, or SpaceX runs it using TSMC's tech support.
There's also buzz about TSMC eyeing a Texas site linked to this project, which could shake things up for Intel, which is slated to deliver its 1.4-nanometer-class Intel 14A process node to manufacture semiconductors for SpaceX, Tesla and xAI under the Terafab banner.