Tesla and SpaceX will build and run the $16.8 billion Texas AI chip site directly, while Intel continues technical work on its 1.4-nanometer node.
MOBy Mina Okoro, Supply chain editor··Updated October 7, 2026·4 min read
ShareLinkedInXWhatsAppEmailTechnicians in cleanroom suits inspect automated machinery inside an advanced semiconductor fabrication facility. (AI-generated image)
Elon Musk rejected reports on Oct. 7, 2026, that Taiwan Semiconductor Manufacturing Co. would take over operations at the Terafab artificial intelligence chip venture in Texas.
Musk stated that Tesla and SpaceX will construct and operate the facility themselves. He added that TSMC could at most sublease unused cleanroom space on the campus.
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Supply chain editor — Mina Okoro builds the impact maps that connect East Asian developments to buyers in North America and Europe, and edits the Asia Compare desk.
