Musk Says Tesla, SpaceX Will Operate Texas Terafab Chip Plant

Elon Musk said Tesla and SpaceX will build and operate Terafab, an artificial intelligence chip complex in Texas, keeping control of the facility rather than handing it to TSMC.

TSMC may lease part of the site, but it will not own or operate the plant, Musk said. The arrangement would leave construction and day-to-day operations with Musk’s companies.

Terafab is a joint Tesla-SpaceX project intended to create a large-scale chip manufacturing facility in Texas. The companies have not provided a completion date in the available announcement.