TSMC stock in focus as Tesla reopens Texas Terafab talks

Published on 11/05/2026 at 09:37 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

TSMC stock is in focus as Tesla may give the chipmaker a larger Terafab role. Ownership and funding terms remain unsettled as talks may resume.

Tesla Reconsiders Terafab Control

Tesla may reopen negotiations with TSMC over construction and operations at the Texas Terafab project.
Ownership, investment terms and Intel's potential role remain unresolved.
Production targets point to a test chip in 2027 and possible volume output in 2028.

TSM, US8740391003, Illustration mit AI erstellt.

Taiwan Semiconductor Manufacturing Co. may receive a broader role in Tesla's planned Terafab chip project in Texas, according to a November 2 report by El Fondo. The report, citing supply-chain sources and a DigiTimes account, said Elon Musk had softened his earlier position and that talks could reopen.

A Larger Operating Role

The discussions could move toward TSMC taking primary responsibility for building and operating the facility. Tesla and SpaceX had previously been described as planning to build and run the plant themselves, with TSMC potentially limited to subleasing part of the site.

That possible shift would give TSMC a more central role in a project intended to expand semiconductor production in the United States. It would also leave the key commercial structure unsettled: equity ownership and investment arrangements are still under negotiation. Tesla, SpaceX and TSMC had not immediately commented on the report cited by El Fondo.

Intel was previously linked to Terafab after Musk said Tesla planned to use Intel's next-generation 14A process. The latest report did not clarify whether Intel's role would change if TSMC assumed greater responsibility for construction and fab operations.

Targets Remain In The Future

Musk said on SpaceX's third-quarter earnings call that he aimed to have a test chip operating around May or June 2027 at an Austin research fab. He described volume production at Terafab in the third or fourth quarter of 2028 as an aspiration, while pointing to potential advances in chip fabrication.

TSMC stock traded at 347.00 euros on Lang & Schwarz at 09:31 CET on Thursday, November 5, 2026. Investors can follow the real-time quote of TSMC stock for the latest indication.