TSMC explores role in Elon Musk's proposed Texas chip complex
- TSMC chairman confirms talks with Musk's Terafab project, but demands operational control of any joint factory.
- Musk publicly plays it cool—‘Just discussions’—while claiming Tesla and SpaceX will build and run the complex themselves.
- TSMC's US customers now account for 79% of revenue, with AI demand so hot that Wei says they can't make chips fast enough.
- Record quarterly profit of $23.9 billion, but CFO hints capital spending will spike even more through 2028.
- Arizona expansion balloons to $265 billion, making Texas a sideshow—for now.
Brief Summary
Taiwan Semiconductor Manufacturing Co. is reportedly in talks to partner on Elon Musk's proposed ‘Terafab’ chip complex in Texas, but Chairman C.C. Wei made it clear he won't play second fiddle: any factory 'has got to be run by TSMC.' The discussions are still in the puppy-dog stage, with no ownership structure or scope defined, while Musk's public stance oscillates between coy interest and claiming Tesla and SpaceX will do it themselves—classic Musk negotiation theater.
Why This Matters
For the average reader, this is about more than tech gossip. It's a front-row seat to the future of AI hardware, where TSMC's near-monopoly on advanced chips gives it leverage over even the world's richest man. If TSMC expands into Texas, it could mean more US jobs and supply chain security, but also a deepening dependency on a foreign company that's clearly not giving up control.