{
  "id": 14665306,
  "title": "TSMC confirms talks with Elon Musk over Texas ‘Terafab’ but insists on operational control",
  "url": "https://urgent.news/2026/10/15/tsmc-confirms-talks-with-elon-musk-over-texas-terafab-but-insists-on-14665306",
  "topic": "tech",
  "section": "Tech",
  "published": "2026-10-15T09:31:35.000Z",
  "source": {
    "name": "SCMP Tech",
    "slug": "scmp-tech",
    "url": "https://www.scmp.com/tech/big-tech/article/3371010/tsmc-confirms-talks-elon-musk-over-texas-terafab-insists-operational-control"
  },
  "original_language": "en",
  "account": "Taiwan Semiconductor Manufacturing Co (TSMC) is engaging in discussions about a potential partnership with Elon Musk's proposed Texas 'Terafab' project, according to company chairman and CEO C.C. Wei. However, Wei emphasized that TSMC would maintain operational control of any partner factory. The ambitious plant, aimed at manufacturing high-performance chips for Musk's AI and robotics ecosystem, requires TSMC's operational oversight, Wei stated during the company's third-quarter earnings call on Thursday.\n\nTSMC, the world's largest contract chipmaker, has dispatched teams to Texas to evaluate expansion opportunities beyond its existing hub in Arizona. Discussions with a prospective Terafab customer regarding the utilization of manufacturing capacity at the Texas site are underway, driven by surging demand from major US clients urging TSMC to enhance its US presence. Despite these talks, no definitive conclusions have been reached thus far, Wei reported.\n\nThe ownership structure and specific scope of TSMC's potential involvement in the Terafab project remain undefined. Musk hinted at early-stage discussions on October 3 via a post on X, stating, \"Just discussions, but something may come of it.\" Musk further clarified on October 7 that Tesla and SpaceX intended to \"build and run\" the Terafab complex themselves, though he kept the door open for TSMC to lease a portion of the site. These negotiations highlight TSMC's relentless pursuit to expand production capacity to meet the soaring demand for advanced AI semiconductors from key clients such as Nvidia. In July, TSMC committed an additional US$100 billion to bolster its Arizona operations, raising its total planned investment there to US$265 billion. This investment will facilitate the construction of chips at 2 nanometres and below, along with advanced packaging facilities. North American customers contributed to 79 percent of TSMC's third-quarter revenue, up from 76 percent a year earlier, while revenue from mainland China shrank to 5 percent from 8 percent. TSMC reported a record quarterly net profit of NT$763.1 billion (US$23.9 billion), a 68.7 percent increase from the previous year, with revenue rising 50.9 percent to NT$1.49 trillion (US$46.72 billion). High-performance computing, encompassing AI chips and data centre processors, accounted for 68 percent of revenue, compared to 57 percent a year earlier. Wei affirmed that TSMC did not detect any signs of slowdown in AI demand, asserting that customer requirements consistently outpaced the company's chip-supply capabilities. The CEO forecasted fourth-quarter revenue of US$52.3 billion to US$54.3 billion, indicating a growth of approximately 14 percent from the midpoint of the third quarter. CFO Wendell Huang disclosed during the call that capital spending from 2026 to 2028 would significantly exceed the previous three years' spending levels, though he refrained from providing precise annual figures beyond the current year. TSMC retained its capital spending forecast for the current year between US$60 billion and US$64 billion.",
  "summary": "Taiwan Semiconductor Manufacturing Co (TSMC) is in discussions regarding a potential role in Elon Musk’s proposed Terafab project in Texas, according to company chairman and CEO C.C. Wei, although he stressed that TSMC would retain operational control of any partner factory. The plant “has got to be run by TSMC”, Wei said during the third-quarter earnings call on Thursday. TSMC, the world’s…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 4,
    "also_reported_by": [
      {
        "outlet": "Nikkei Asia",
        "title": "TSMC eyes Texas and Musk Terafab project for US expansion",
        "url": "https://urgent.news/2026/10/15/tsmc-eyes-texas-and-musk-terafab-project-for-us-expansion",
        "published": "2026-10-15T08:57:54.000Z"
      },
      {
        "outlet": "South China Morning Post",
        "title": "TSMC confirms talks with Elon Musk over Texas ‘Terafab’ but insists on operational control",
        "url": "https://urgent.news/2026/10/15/tsmc-confirms-talks-with-elon-musk-over-texas-terafab-but-insists-on",
        "published": "2026-10-15T09:31:35.000Z"
      },
      {
        "outlet": "The Chronicle Ghana",
        "title": "Ukraine accuses Elon Musk’s SpaceX of throttling Starlink terminals",
        "url": "https://urgent.news/2026/10/15/ukraine-accuses-elon-musks-spacex-of-throttling-starlink-terminals",
        "published": "2026-10-15T09:47:43.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}