Taiwan Semiconductor Manufacturing Co. (TSMC) is in talks with Elon Musk’s Terafab chipmaking project about a potential partnership, while emphasizing it would maintain operational control of any factory involved. The discussions were confirmed by TSMC CEO C. C. Wei during the company’s earnings call on Thursday, coinciding with TSMC reporting a record quarterly net profit of $23.6 billion for July to September.
TSMC’s CEO C. C. Wei clarified that although discussions with Terafab are ongoing, the chip giant insists that any fab must be run by TSMC itself. This stance contrasts with Musk’s earlier statements that his companies would build and operate Terafab independently. The proposed Texas-based chipmaking complex aims to supply advanced semiconductors for Musk’s ventures such as Tesla, SpaceX, and AI operations.
The talks reflect the strategic importance of advanced semiconductor manufacturing amid rising demand for AI chips. TSMC’s record profits mark its sixth consecutive quarter of gains, driven by strong AI chip demand. Musk’s Terafab project seeks to secure supply chains for AI, robotics, autonomous vehicles, and space computing, highlighting the growing competition and collaboration dynamics in the semiconductor industry.
TSMC’s insistence on operational control underscores its dominant position in chip manufacturing. The company’s quarterly net profit of NT$763.1 billion ($23.6 billion) sets a new record, reinforcing its influence as negotiations with Terafab continue, according to livemint.com.