Musk sought to buy Intel, TSMC and Micron fabs before pivoting Terafab to partnerships
Elon Musk first tried to buy wafer manufacturing facilities from Intel, TSMC and Micron before building his Terafab chip project, and turned to partnerships after being turned down, according to a Korean media report from The Elec relayed by Wccftech and TechNews. Intel has directly partnered with Terafab and will support it through its Intel 14A manufacturing technology, while TSMC's role remains disputed: Musk said TSMC could at most be a subcontractor, and TSMC CEO C.C. Wei confirmed talks but said TSMC must operate the plants itself for any partnership to work. Terafab has reportedly held discussions with Korean suppliers as well as Lam Research and Applied Materials, plus piping, slurry and cleaning-chemical vendors, and industry observers expect an initial 100,000 wafers per month before 2030 against Musk's eventual goal of one million wafers per month.
The reports describe Terafab as part of Musk's plan to build enough chips for Tesla's autonomous vehicles, Optimus humanoid robots and other projects, linking the chip effort to his AI and robotics ambitions.
Elon Musk Tried To Buy Chip Plants From Intel, TSMC And Micron Before Building Terafab, But Was Snubbed And Pivoted To Partnerships To Fuel Plan For “Million Times’ Of Earth Economy
Ramish Zafar•Oct 20, 2026 at 11:54am EDT
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Elon Musk initially tried to buy manufacturing facilities from Intel, TSMC and Micron before embarking on his ambitious Terafab project, says a fresh report from the Korean media. The report, courtesy of The Elec, covers the different suppliers Terafab has been working with and adds that the speed of execution at the project has left many suppliers surprised. Through Terafab, industry observers expect an initial production of 100,000 wafers per month before 2030 before scaling up to Musk's ambitious goal of a million wafers a month.
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#Terafab#Elon Musk#Intel#TSMC#Micron#Tesla#SpaceX#Lam Research#Applied Materials#Intel 14A