Musk’s ambitions in chip manufacturing could soon receive a significant boost. Recent reports suggest that TSMC is exploring potential collaboration with Terafab, a joint project launched by Musk’s SpaceX and Tesla. TSMC is also considering Terafab as a cornerstone customer for its upcoming wafer fabrication plant in Texas. Responding on social media, Musk noted that discussions are ongoing but added, “Progress is possible.”

Terafab, a proposed 2-nanometer chip manufacturing project announced by Musk in November 2025, aims to establish the world’s largest semiconductor production facility. Its primary goal is to address the growing chip demands of Tesla, SpaceX, and potentially other high-tech enterprises. Earlier, Terafab had already secured a partnership with Intel. A new collaboration with TSMC would mark another major step forward for the initiative, enhancing its technological and industrial prospects.