Musk Says Tesla and SpaceX Will Build and Run Texas Terafab

Elon Musk said Tesla and SpaceX will build and operate their planned Terafab AI-chip factory in Texas, limiting Taiwan Semiconductor Manufacturing Co.'s role to a possible partial lease.

Musk rejected the idea that TSMC would own and operate the entire facility. “No, we will build and operate this factory, there should be no doubt about that,” he said.

He added that TSMC “may lease part of Terafab, but that’s all.”

The statement clarifies the proposed division of responsibility after Musk said last week that Tesla and SpaceX had begun discussing potential cooperation on the project.

Terafab is planned as an AI-chip manufacturing facility serving Musk’s companies.