Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk is reportedly reconsidering how much control to keep over his Terafab chip project in Texas, and may let Taiwan Semiconductor Manufacturing Co.
Ltd. (NYSE:TSM) take a bigger role in building and running it.
TSMC Could Run Terafab Fab Operations Musk has “softened his stance” on working with TSMC, and the two sides are preparing to reopen negotiations, supply chain sources told Digitimes, a Taiwan-based media outlet, in a report published Sunday. Last month, Musk said that Tesla and Space Exploration Technologies Corp.
would build and run the fab, leaving TSMC at most a sublease on part of the site. The report said talks could now move toward TSMC taking primary responsibility for fab construction and operations, while equity ownership and investment arrangements remain under discussion.
Tesla, SpaceX and TSMC did not immediately respond to Benzinga’s request for comment. Read Also: Trump Says Iran War Will End ‘One Way or the Other’ Ahead of Midterms Tuesday: Dow Futures Rise 184 Points, Brent Crude Falls to $111 Intel’s Role in Terafab Intel Corp.
was the first major chipmaker publicly tied to Terafab. In April, Musk said Tesla planned to use its next-generation 14A manufacturing process for chips at the project.
The Digitimes report did not mention what role Intel would play if TSMC takes on a bigger one. TSLA Targets 2028 for Terafab Volume Production On SpaceX’s third-quarter earnings call last month, Musk said he aims to have a test chip working around May or June of next year at the company’s research fab in Austin, Texas.
22 in extended trading. Benzinga Edge rankings indicate Tesla’s stock has a Momentum score in the 71st percentile and a Growth score in the 22nd percentile.
See More: Top Value Stocks Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
