"We expanded our capacity consideration to see outside Arizona, whether we can get another chance to expand our capacity," said C.C. Wei during the company's earnings call with financial analysts and investors. "Texas is one [of our options]. We sent the teams to Texas to do all the evaluation. We also talked to one of our customers, who is trying to build a fab, Terafab, let me be more specific."
Recently in transpired that Elon Musk's Terafab was in talks with TSMC over using the giant semiconductor production facility togethe r. Elon Musk confirmed the negotiations, whereas TSMC did not comment.
"We are discussing with them to see whether we can be utilizing that actual capacity also," Wei added. "So, we are still in discussion. If we have any solid conclusion, we will share with you."
The information about negotiations between Elon Musk's Terafab and TSMC immediately triggered chatter that the parties are set to adopt TSMC's typical business model it uses for ESMC and JASM facilities under which it operates fabs co-owned with other investors. However, Musk then said that Terafab's facility would be operated by Terafab and TSMC could only sub-lease part of its cleanroom . Now, C.C. Wei said that if TSMC joins the project, it will insist on operating the fab.
Elon Musk confirms discussions with TSMC about Terafab chipmaking collaboration
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/tsmc-confirms-it-is-considering-terafab-chipmaking-expansion-with-elon-musk-ceo-insists-tsmc-would-have-to-run-texas-based-project#main
- https://www.tomshardware.com/membership
- Fall Into 25 New Games on GeForce NOW This October
- Rally Up: ‘Gears of War: E-Day’ Launches on GeForce NOW
- All Systems Go: Global PC App Ecosystem Ready for NVIDIA RTX Spark
- NVIDIA Expands Advanced Technology Access for Europe’s Scientific Community Through Open Learning Resources, Collaborations and Compute
- Qualcomm wins architecture breach verdict against Arm but gets just $2
Informational only. No financial advice. Do your own research.