# Taiwan Semiconductor Wants SpaceX Terafab

> TSMC demands operating control for SpaceX's Terafab chip plant to avoid margin loss.
- Title: Taiwan Semiconductor Wants SpaceX Terafab · 24/7 Wall St.
- Summary: TSMC demands operating control for SpaceX's Terafab chip plant to avoid margin loss. TSMC requires running SpaceX's Terafab chip plant to protect margins as…
- Keywords: taiwan semiconductor, spacex, terafab, chip plant, tsmc, space x, semiconductor, space x terafab, taiwan semiconductor company, Taiwan, Wants, 24/7 Wall St.
- Source: 24/7 Wall St. — https://247wallst.com/investing/2026/10/22/taiwan-semiconductor-wants-in-on-spacexs-terafab-but-only-if-it-runs-the-fab
- Author: Rich Duprey
- Published: 2026-10-22T16:28:39+00:00
- Read time: 1 min
- Topics: taiwan semiconductor, spacex, terafab, chip plant, tsmc, space x, semiconductor, space x terafab, taiwan semiconductor company
## TSMC Confirms Talks with SpaceX
Taiwan Semiconductor confirmed talks with SpaceX over the Terafab chip plant on October 15, 2026.

> We are still in discussion, let me say that. Either way it would be possible.
## TSMC's Hard Line on Operation
TSMC CEO C.C. Wei set a firm condition: TSMC must operate the Texas fab to protect margins.

> We will build and run the fab
## U.S. Customers Push for Capacity
TSMC expanded U.S. capacity to serve large U.S. customers and meet growing demand.

> We work very hard to expand our capacity in the U.S. This is necessary because most of our large customers are in the U.S.
## TSMC's Financial Performance
TSMC reported $46.72B third-quarter revenue with 66.4% gross margin and 22% HPC growth.

> Third-quarter revenue reached $46.72B at a 66.4% gross margin
## SpaceX's AI Chip Demand
SpaceX's AI segment revenue rose 247% to $2.56B with $15.83B in AI computing capex.

> In the second quarter, its AI segment revenue rose 247% to $2.56B
## TSMC's Margin Concerns
Overseas fabs reduce TSMC's gross margin by 2% for 2026, potentially 3%-4% over next few years.

> Management said overseas fabs will reduce gross margin by about 2% for full-year 2026
## TSMC's Next Steps
TSMC shares fell 3.05% to $416.90 after earnings, with TSMC promising more details on Terafab.

> If we have any solid conclusion, we will share with you
## Key takeaway

TSMC requires running SpaceX's Terafab chip plant to protect margins as U.S. customers push for capacity expansion.