Musk had originally held firm on constructing and running the wafer fab on his own, with TSMC considered only for subleasing a portion of the plant site. That position has now shifted, according to accounts circulating within the supply chain, prompting the two sides to explore a new structure for their collaboration.
The report, datelined Hsinchu, describes a change in Musk’s attitude toward the Terafab venture. Where he previously limited TSMC’s potential role to leasing part of the factory land, he is now said to be more flexible on the arrangement. The sources indicate the two parties are preparing to rework the broader cooperation plan, though specific revised terms were not detailed.
The brief does not disclose the capacity targets, financial terms, timeline, or location specifics of the Terafab project. It also does not quote Musk or any TSMC representative directly, attributing the account of the softened stance to supply chain sources.
The reported shift signals that a cooperation framework between Musk and TSMC on the Terafab fab, previously constrained by Musk’s preference for self-operation, may now take a different form. The source frames this as the key development, with the two sides said to be moving toward renegotiated terms.
What remains to be seen is whether the reworked talks produce a concluded agreement and what role TSMC ultimately takes in the Terafab fab beyond the land-leasing arrangement first contemplated. The source does not name a date for any decision.
