# TSMC makes operating control a condition of Terafab partnership

_Published Thursday, October 15, 2026 at 6:47 AM EDT · Infrastructure, Products · Latest · Tier 2 — Notable_

![TSMC makes operating control a condition of Terafab partnership — Primary](https://media.thenextweb.com/2026/08/SpaceX-Terafab.jpg)

TSMC would work with Elon Musk's Terafab chip project only if TSMC runs the fab involved, chief executive C.C. Wei said on Thursday's earnings call. The companies remain in discussions and have reached no agreement. Musk said on 7 October that Tesla and SpaceX would build and operate the plant themselves, potentially allowing TSMC to sublease part of it.

Terafab's first phase is a $16.8bn factory in Grimes County, Texas, intended to supply chips for cars, robots and data centres. Wei also said large US customers had requested more capacity, prompting TSMC to send teams to Texas to seek a site beyond Arizona.

## Sources

- [The Next Web](https://thenextweb.com/news/tsmc-terafab-musk-wei-must-run-fab)

---
Canonical: https://techandbusiness.org/newswire/5W5dr6M8PJcqnUgEn3hMCQ
Published: 2026-10-15T10:47:03.419Z
Story chronology: 2026-10-15T09:29:28.000Z
Retrieved: 2026-10-15T14:46:44.332Z
Publisher: Tech & Business (techandbusiness.org)