TSLA · News · 20261102N

Terafab TSMC Partnership

Tesla, Inc. · 2026-11-02 · Importance 34 · Surprise 42

Tesla is reportedly reconsidering its plan to build and operate the Terafab chip project independently and may give Taiwan Semiconductor Manufacturing Co. (TSMC) a larger role. The companies are expected to resume negotiations, which could result in TSMC taking primary responsibility for fab construction and operations; equity ownership and investment arrangements remain under discussion. Tesla is targeting volume production in the third or fourth quarter of 2028. Tesla, SpaceX, and TSMC did not immediately respond to a request for comment.

Key facts

• Digitimes sources reportedly said Tesla and TSMC are preparing to reopen negotiations, with TSMC potentially taking primary responsibility for Terafab construction and operations; equity ownership and investment arrangements remain under discussion. source
• According to the Benzinga report, Tesla aims for volume production at Terafab by the third or fourth quarter of 2028. source