Posted on 10/15/2026 1:46:16 PM PDT by NorthMountain
The Taiwanese chipmaker has sent teams to Texas to evaluate expansion beyond Arizona, where its planned investment has reached $265 billion. Taiwan Semiconductor Manufacturing Co. (TSMC) is evaluating Texas for additional U.S. chip production and has confirmed discussions about potentially using manufacturing capacity at Elon Musk’s planned Terafab semiconductor complex. TSMC Chairman and CEO C.C. Wei disclosed the developments during the company’s third-quarter earnings conference on Oct. 15, saying major American customers have been requesting more U.S. manufacturing capacity.
“Texas is one. We send the teams to Texas to do all the evaluation,” Wei said, referring to locations outside Arizona under consideration.
He separately confirmed discussions about Terafab, a semiconductor manufacturing project involving Musk’s SpaceX and Tesla.
“We are still in discussion. If we have any solid conclusion, we will share with you,” Wei said.
TSMC has not announced a Texas investment amount, selected a site, or disclosed a construction timetable.
He separately confirmed discussions about Terafab, a semiconductor manufacturing project involving Musk’s SpaceX and Tesla.
“We are still in discussion. If we have any solid conclusion, we will share with you,” Wei said.
TSMC has not announced a Texas investment amount, selected a site, or disclosed a construction timetable.
Terafab Talks and Operational Control On Aug. 6, Texas Gov. Greg Abbott announced that SpaceX planned to build Terafab in Grimes County, northwest of Houston.
The project’s first phase involves more than $16.8 billion in planned investment and is expected to create 3,000 jobs, according to the governor’s office. Texas also offered SpaceX a $30 million grant.
Musk acknowledged discussions with TSMC in an Oct. 3 post on X.
“Just discussions, but something may come of it,” he wrote.
On Oct. 7, Musk said his companies would build and operate Terafab. He added that TSMC might sublease part of the complex, but would have no larger role in its operation.
Intel is already involved in the project. SpaceX disclosed in a Securities and Exchange Commission filing that Intel joined Terafab in April and is expected to contribute expertise in chip design, manufacturing, and advanced packaging.
The filing also states that SpaceX and Tesla have agreed on a general framework for Terafab, but specific projects, timelines, and spending commitments remain subject to separate negotiations.
Asked during the Oct. 15 earnings conference whether TSMC would operate any facility developed through its discussions with Terafab, Wei said the arrangement had not been determined.
“It’s not either way, it would be possible, but the fab has to be run by TSMC,” he said.
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It's as if everyone forgot the same approach made the US the world's greatest industrial power by the end of the 19th Century.
Musk lacks the semiconductor experience to make Terafab a success.
Linking with TSMC is a very wise move!
Intel walked away from the 1/4 done Austin fab, buried the one in Mass and Ohio fab is way behind schedule.
It is a very easy place to burn billions with no return.
Hurrah for the Bonnie Blue Flag!
But doesn’t it usually have a white star?
“The first official flag, the "National Standard of Texas," was passed by the Congress of the republic and approved by President Sam Houston on December 10, 1836. It consisted of an azure ground with a large golden star central.. This flag, known as David G. Burnet's flag, served as the national flag until January 25, 1839, and the war flag from January 25, 1839, to December 29, 1845.”
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