Monday 05 / October / 2026
Taipei: Taiwan Semiconductor Manufacturing Co. (TSMC) is in talks over a potential role in Elon Musk’s planned Terafab foundry in Texas, with the discussions still at an early stage, according to a news report by Taiwan Plus.
TSMC Chairman and CEO CC Wei said the timeline for building and scaling a new wafer fabrication plant could be a key consideration as the companies discuss the project.
Wei said a new wafer fabrication plant would take about two to three years to build, while expanding its production capacity could require another one to two years, calling it a “fundamental” of the foundry industry, Taiwan Plus reported.
The report said one option under discussion would have TSMC own and operate the Texas plant, while SpaceX would invest in the project and purchase chips produced at the facility. Another option would give SpaceX a majority stake in the plant.
Musk has confirmed the discussions with TSMC on X, saying the talks are still at an early stage, Taiwan Plus reported.
The potential Texas project comes as TSMC continues to expand its manufacturing presence in the United States. Taiwan’s Ministry of Economic Affairs had approved applications for TSMC to invest $44 billion in the United States since December 2020, according to an earlier Focus Taiwan report.
TSMC announced in March 2025 that it planned an additional $100 billion investment in Arizona, on top of an earlier $65 billion plan, taking its overall planned investment in the state to $165 billion.
The expanded Arizona plan included increasing the number of planned advanced wafer fabrication facilities from three to six, along with two advanced integrated circuit assembly units and a dedicated research facility, according to Focus Taiwan.
For the proposed Texas Terafab, the ownership structure and TSMC’s eventual role remain under discussion. With the talks still at an early stage, the proposed operating and investment arrangements have yet to be finalised.
