Taiwan Semiconductor Manufacturing Co (TSMC) is in discussions regarding a potential role in Elon Musk’s proposed Terafab project in Texas, according to company chairman and CEO C.C. Wei, although he stressed that TSMC would retain operational control of any partner factory.
The plant “has got to be run by TSMC”, Wei said during the third-quarter earnings call on Thursday.
TSMC, the world’s largest contract chipmaker, has sent teams to Texas to assess expansion opportunities beyond its US hub in Arizona, Wei said. He noted that the company was discussing with a potential Terafab customer whether it would use manufacturing capacity at the Texas complex, amid surging demand from major US customers who are urging the Taiwan-based to expand its US footprint.
However, discussions had yielded no firm conclusion so far, Wei said. The ownership structure and scope of TSMC’s potential involvement remained unclear.