With Tesla teaming up with Intel on the “Terafab” initiative and accelerating its push into chip manufacturing, attention in the market is turning to how TSMC will respond. At today’s earnings call, chairman C.C. Wei acknowledged that both Intel and Tesla remain TSMC customers, while also calling Intel a “formidable competitor” that should not be underestimated.

As reported by Bloomberg, Elon Musk’s Tesla team is actively reaching out to semiconductor industry suppliers for its “Terafab” project. The report cites sources saying Tesla has contacted major equipment makers including Applied Materials, Tokyo Electron, and Lam Research as it lays the groundwork for its planned wafer fab buildout. Separately, TechNews reports that the outreach has also expanded to Taiwan-based equipment suppliers and fab construction service providers.

Meanwhile, the Terafab initiative has also drawn in its chip manufacturing partner Samsung Electronics, though Samsung is said to have suggested that additional capacity from its under-construction Taylor, Texas fab could be allocated to Tesla instead, Bloomberg notes. The report adds that Musk is targeting the start of silicon chip production around 2029, with plans to ramp up output thereafter.

Still, TSMC’s C.C. Wei struck a cautious tone on execution timelines, stressing that there are no shortcuts in the foundry business. He noted that building a new fab typically takes 2–3 years, followed by another 1–2 years for ramp-up. Against that backdrop, he reiterated confidence in TSMC’s positioning, saying the company will continue to pursue every possible business opportunity.

NVIDIA–Samsung LPU Tie-Up Draws Attention

Notably, C.C.Wei also commented on Samsung’s cooperation with NVIDIA, its largest AI accelerator customer, on the production of LPUs, when an analyst asked whether the emergence of a new LPU design could reshape the competitive landscape for TSMC.

C.C. Wei declined to comment on specific customer products, but said TSMC is already working with its customer on next-generation LPU designs. He reiterated confidence in the company’s technology position and added that TSMC will continue to pursue “every piece of business possible.”

Read more

• [News] Tesla AI5 Reportedly Uses SK hynix Memory, Samsung LPDDR5X; Samsung SF2T Process Applied Ahead of AI6
• [News] TSMC Sees 2Q Sales Up 10% QoQ to $40.2B; Margins Rise to 65.5%–67.5%, Capex at Top End of $52–56B

(Photo credit: SpaceX)