Musk says Tesla and SpaceX, not TSMC, will build and run Terafab.

Elon Musk says Tesla and SpaceX will build and run Terafab, their planned AI chip complex in Texas, ruling out an ownership or operating role for Taiwan Semiconductor Manufacturing Co. and leaving it at most a possible sublease. "No, we will build and run the fab. Let there be ZERO doubt about that," Musk wrote on X at 2:33 a.m. ET on Wednesday, Oct. 7. "Maybe TSMC subleases part of the Terafab if they want, but nothing more than that."

Musk was replying to a post by Tesla commentator Herbert Ong that said "the likeliest deal" had TSMC owning and running the fab, with SpaceX investing or committing to buy chips. Reuters, which reported the exchange, described Musk's reply as saying his companies will build and run the complex. Musk did not say what a sublease would cover, and no agreement with TSMC has been announced.

The post came four days after Musk called the TSMC talks "Just discussions, but something may come of it" in an Oct. 3 reply on X. That reply followed an Oct. 2 exclusive in Tim Culpan's Culpium newsletter reporting that TSMC was exploring ways to work with Terafab to help run its Texas factories. In an Oct. 3 follow-up, Culpan wrote that the most likely scenario he reported was TSMC trying to own and operate the new factory, adding: "These plans are not set in stone, with other variations on the cooperation also being considered." Musk's new post rejects that scenario.

Intel CEO Lip-Bu Tan told Bloomberg News on Oct. 7, ahead of an event in Tokyo marking Intel's 50th year of operations in Japan, that Intel will remain involved in Terafab. Bloomberg reported that Intel signed on as the project's development partner in April; Reuters reported that month that Musk planned to use Intel's 14A process for Terafab. Reuters, citing Tan's Bloomberg comments, said any TSMC involvement could challenge Intel's role.

TSMC has not commented publicly on Musk's post or the Terafab talks. Reuters said TSMC and Intel did not immediately respond to requests for comment.

Separately, Bloomberg and Reuters reported last week, citing unnamed sources, that TSMC is weighing a new Texas campus beyond its Arizona buildout. On that report, TSMC told Bloomberg "We have no comment on market rumors" and declined to comment to Reuters. Neither report said that campus is Terafab.

The question now is who runs the factory. Tesla and SpaceX have never operated a chip fab, which is why TSMC's expertise drew attention, Teslarati noted. Musk is claiming that job for his own companies, Intel's CEO says Intel is staying, and TSMC, by Musk's account, would be no more than a possible tenant.