AI computing power hardware cooperation, Musk still trusts Chinese manufacturing more

What happened: Elon Musk confirmed on X that he is discussing Terafab chip manufacturing cooperation with TSMC. Intel remains the only officially named partner, planned to supply 14A process to Terafab. Key numbers: Terafab phase one investment is $16.8 billion, with long term potential total investment up to $119 billion. Why it matters: Reports suggest Intel's 14A could be displaced if TSMC joins using its own process, though a hybrid model is also floated: Intel for front end 14A, TSMC for back end operations, yield and packaging. TSMC is also reportedly evaluating a new Texas base.

Elon Musk confirmed on X that he is discussing Terafab chip manufacturing cooperation with TSMC. Intel remains the only officially named partner, planned to supply 14A process to Terafab.

Reports suggest Intel's 14A could be displaced if TSMC joins using its own process, though a hybrid model is also floated: Intel for front end 14A, TSMC for back end operations, yield and packaging. TSMC is also reportedly evaluating a new Texas base.