# Terafab project will be responsible for producing custom and in-house chips for Tesla, SpaceX, xAI, and other ventures.

*semiconductor · news · 2026-04-18 · Wccftech*

## Key points

- Elon Musk confirmed SpaceX and Tesla will remain major customers of TSMC despite new projects.
- SpaceX, Tesla, and xAI will use custom chips produced by the Terafab project with Intel.
- Terafab's initial trial run is set for 2029, producing 3,000 wafers per month.
- Terafab is not meant for third-party fabless clients but to meet Musk companies' internal demand.

**Companies:** SpaceX, Tesla, TSMC, Intel
**Countries:** Taiwan, South Korea, United States

[Read the full story on Wccftech](https://wccftech.com/elon-musk-tells-tsmcs-ceo-that-terafab-wouldnt-exist-if-the-foundry-could-keep-up-with-his-chip-demand/)

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