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Elon Musk Confirms TeraFab Discussions Between SpaceX and TSMC, Says SpaceXAI Will Be Renamed SpaceXSI

The venture has an initial $16.8 billion investment and plans to employ at least 3,000 people, the company said.

  • On Monday, Tesla and SpaceX CEO Elon Musk confirmed that Taiwan Semiconductor Manufacturing Co. could take part in his Terafab chip venture in Texas, causing Intel stock to fall more than 4% in premarket trading.
  • Terafab is a joint venture between Tesla and SpaceX located in Grimes County, Texas, with an initial $16.8 billion investment and at least 3,000 workers; Intel originally joined the project in April.
  • The Texas site will produce chips for Tesla's Optimus robots, Cybercabs, and space-based data centers, while Tesla maintains a separate $16.5 billion deal with Samsung for AI6 chips.
  • Following the announcement, TSMC stock rose about 3% in Taiwan and 1% in premarket trading, as North American customers account for more than 75% of the Taiwanese foundry's wafer revenue this year.
  • Musk previously courted the Dutch company ASML, the sole supplier of extreme ultraviolet lithography machines essential to Terafab, at an annual technology conference earlier this year to secure equipment all chipmakers rely on.
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(Los Angeles=Yonhap News) Correspondent Kim Kyung-yoon = Discussion is underway regarding the possibility of Taiwanese semiconductor company TSMC participating in Elon Musk's large-scale semiconductor factory project 'TerraFab'...

·Seoul, Korea (the Republic of)
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Startup Fortune broke the news on Saturday, October 3, 2026.
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