Elon Musk Confirms Tesla-SpaceX Will Build and Operate Terafab AI Chip Complex, Ruling Out TSMC Operational Role

Elon Musk clarified on October 7, 2026, that Tesla and SpaceX will exclusively build and run the Terafab AI chip complex in Texas, a massive vertically integrated facility aimed at producing AI chips. While TSMC might sublease a portion of the facility, it will not be involved in its operation. Intel is confirmed as a key partner, contributing its advanced 14A manufacturing process. This development solidifies Tesla and SpaceX's direct control over their AI chip infrastructure.