Elon Musk Tells TSMC’s CEO That Terafab Wouldn’t Exist if the Foundry Could Keep Up With His Chip Demand

Elon Musk said Tesla and SpaceX will keep sourcing chips from TSMC.

But TSMC cannot fully meet the companies’ rapidly growing demand, so Musk is backing the Terafab project with Intel to build custom chips in-house.

The effort is meant to serve internal needs, not other chipmakers, with AI5 and AI6 among the expected targets.

TSMC’s CEO also underscored how long it takes to build and ramp a new fab.