When you purchase through links on our site, we may earn an affiliate commission. Here’s how it works .
"Just discussions, but something may come of it," Musk wrote in an X post, while TSMC has so far remained tight-lipped.
Under the arrangement Culpan considers most probable, TSMC would own and operate the new semiconductor production facility, while SpaceX/Terafab could invest in the venture, commit to buying a guaranteed volume of chips, or combine both approaches. However, the exact ownership structure remains under discussion. Another option would put SpaceX in control of the venture with the majority ownership; TSMC would invest less, but would still provide 'operational expertise' and process technologies. Perhaps, an interesting background detail from Culpium is that TSMC's rumored intentions to build a fab complex in Texas are tied to the foundry's effort to support Terafab.
The proposed 'Plan A' arrangement could resemble TSMC's JASM and ESMC joint ventures in Japan and Germany, where local partners provide capital and demand while TSMC contributes process technology and operates the fabs. The proposed 'Plan B' structure — under which SpaceX will hold the majority ownership of Terafab while TSMC would operate the facility and bring its own process technology — would be completely new for the world's No.1 contract chipmaker, though.
The development certainly raises questions about Intel's role in Terafab. For now, Intel is to supply its 1.4nm-class 14A process technology to Terafab , which would produce chips for Elon Musk's SpaceX, Tesla, and xAI. If TSMC becomes involved, then Intel's 14A could drop out of the game because TSMC will bring its own node.
Elon Musk's massive Terafab chip-making facility starts to take shape
Key considerations
- Investor positioning can change fast
- Volatility remains possible near catalysts
- Macro rates and liquidity can dominate flows
Reference reading
- https://www.tomshardware.com/tech-industry/semiconductors/SPONSORED_LINK_URL
- https://www.tomshardware.com/tech-industry/semiconductors/elon-musk-confirms-discussions-with-tsmc-about-terafab-chipmaking-collaboration-intel-is-the-only-other-named-partner-terafab-to-exclusively-supply-tesla-spacex-and-xai#main
- https://www.tomshardware.com/membership
- Wolverine PS5 exclusive ported to PC in buggy solo project using AI
- Microsoft using wetlands and native gardens to 'camouflage' 20-plus data center sites by blending them into nature
- Take $40 off the blistering Ryzen 7 9800X3D and get two freebies
- Iranian national extradited to US over alleged $3.4 billion state-backed hacking campaign in rare legal win for law enforcement
- Portable Bluetooth CD player has a glow-in-the-dark transparent green finish, modern features
Informational only. No financial advice. Do your own research.