# Elon Musk rejects TSMC Terafab deal, backing Intel 14A node

*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.*

**Published:** October 7, 2026  
**By:** Mina Okoro  
**Section:** Semiconductors & AI Hardware — Cross-border  
**Format:** Breaking  
**Confidence:** high  
**Source:** https://eastasiabrief.com/semiconductors/elon-musk-rejects-tsmc-terafab-deal-backing-intel-14a-584  
**Publisher:** East Asia Brief (https://eastasiabrief.com/)

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## What to know

- Elon Musk rules out TSMC operations at $16.8 billion Texas Terafab
- Intel confirms 14A node partnership remains in place for 1 TW AI venture
- Pilot qualification wafers targeted for mid-2028 in Grimes County

![Technicians in cleanroom suits inspect automated machinery inside an advanced semiconductor fabrication facility. (AI-generated image)](https://eastasiabrief.com/media/2026-10-07-9f64d4910571.webp)
*Technicians 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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Cite as: East Asia Brief, "Elon Musk rejects TSMC Terafab deal, backing Intel 14A node," October 7, 2026. https://eastasiabrief.com/semiconductors/elon-musk-rejects-tsmc-terafab-deal-backing-intel-14a-584