TSMC says it is in discussions with Musk's Terafab, but must retain control over wafer fab operations

TSMC is currently in talks to cooperate with Elon Musk’s Terafab project, but TSMC emphasized that in any cooperation arrangement, TSMC must retain operational control over chip production. When asked whether TSMC would participate in Musk’s ambitious chip manufacturing plans, TSMC CEO C.C. Wei stated that the company must be responsible for operating the wafer fab. Previously, Musk said last week that TSMC can at most rent out capacity, but not be responsible for factory production operations. On a conference call, Wei stated: “We are still in discussions. But I want to emphasize, the wafer fab must be operated by TSMC.” In response to market speculation about TSMC’s possible participation in factory operations, Musk previously stated that Terafab will be fully operated by his companies. Apart from confirming that discussions are ongoing, neither side has disclosed any specific terms of a potential cooperation arrangement.