TSMC is currently evaluating the possibility of expanding its manufacturing footprint into Texas. During a recent earnings call, CEO C.C. Wei confirmed that the company is in discussions with Elon Musk regarding his Terafab project to determine if TSMC can utilize its capacity.
A central point of contention remains the operational control of the facility. While Musk initially proposed that Terafab would operate the site with TSMC sub-leasing cleanroom space, C.C. Wei stated that TSMC insists on operating any fabrication facility it utilizes.
The companies have not yet reached a formal agreement. Potential compromises include Terafab owning the complex while TSMC independently operates specific production lines, though technical complexities may arise if the facility employs Intel 14A process technology.
TSMC reported strong financial results for the third quarter of 2026, with revenue reaching $46,72 billion, a 41,2% increase year-over-year. Net income rose to approximately $23,9 billion, supported by high demand for AI-related chips.
For the fourth quarter of 2026, the company forecasts revenue between $52,3 billion and $54,3 billion. TSMC also projects a gross margin in the range of 65% to 67% for the upcoming period.
