# TSMC in Talks with Elon Musk for Terafab Project

October 3, 2026 at 11:53 AM

> TSMC and Elon Musk's Terafab project are discussing a joint venture to build a comprehensive semiconductor manufacturing site in Austin.

[TSMC](<https://hardwarebrief.com/entity/tsmc-q713418>) is currently in discussions with [Elon Musk](<https://hardwarebrief.com/entity/elon-musk-q317521>)'s [Terafab](<https://hardwarebrief.com/entity/terafab-q138816797>) project regarding a potential joint venture to establish end-to-end semiconductor manufacturing in the United States. Musk confirmed the exclusive report, which was first published by Tim Culpan.

The Terafab project aims to consolidate logic fabrication, memory, packaging, testing, and mask production at a single Austin site. Terafab would provide financial backing, equity participation, and purchase agreements to secure new semiconductor capacity.

This collaboration follows [Intel](<https://hardwarebrief.com/entity/intel-q248>)'s partnership with Terafab, where [Tesla](<https://hardwarebrief.com/entity/tesla-inc-q478214>) became the first major customer for the 14A node. Terafab has reportedly begun ordering essential tools from industry leaders like ASML, Lam Research, KLA Corporation, and Tokyo Electron.


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