Report says Musk may let TSMC take a larger role in Terafab

A Digitimes report carried by Benzinga says Elon Musk is reconsidering how much control Tesla keeps over its Terafab chip project in Texas. Supply-chain sources suggested Tesla and TSMC could reopen talks that would give TSMC primary responsibility for building and running the fab, while ownership and investment terms remain open. This reverses Musk's stated plan from last month, when he said Tesla and SpaceX would build and run the fab with TSMC at most subleasing part of the site. Tesla and TSMC did not respond to requests for comment, and the report did not describe Intel's role if TSMC expands its own. Tesla is targeting a working test chip around May or June 2027, with volume production in late 2028 described as an aspiration.

1. Digitimes, citing supply-chain sources, reported Tesla and TSMC could reopen negotiations on Terafab.
2. Under the reported talks, TSMC could take primary responsibility for fab construction and operations; equity terms are still under discussion.
3. Musk had earlier said Tesla and SpaceX would build and run the fab, with TSMC at most subleasing part of the site.
4. Tesla is targeting a working test chip around May or June 2027.
5. Musk called volume production in Q3 or Q4 2028 an aspiration.