November 3, 2026 / SemiMedia / — Elon Musk is reportedly reconsidering the role TSMC could play in his Terafab semiconductor project, with the two sides preparing to reopen talks on a revised partnership structure, according to DigiTimes citing supply chain sources.

Musk previously said his companies would build and operate the factory, with TSMC potentially leasing part of the site. The latest report suggests he may be willing to give the foundry a larger role in construction and operations.

The reported reassessment follows slower than expected progress in packaging, PCB capacity and manufacturing preparations. A revised arrangement could put TSMC in charge of key factory construction and operating responsibilities, although ownership and investment terms remain under discussion.

TSMC Chairman and CEO C. C. Wei confirmed in October that discussions with the Terafab team were underway. He said TSMC would need to operate the fabrication plants in any cooperation.

The central question is therefore how the parties would divide operating control and investment responsibilities. No final partnership agreement has been announced.