New Delhi, Oct. 15 -- Taiwan Semiconductor Manufacturing Co. (TSMC) is discussing a potential collaboration with Elon Musk's Terafab chipmaking project, but the Taiwanese semiconductor giant has made clear that it would retain control over factory operations under any arrangement. The comments come as TSMC reported a record quarterly net profit of NT$763.1 billion ($23.6 billion) for July to September, extending its run of record profits to six consecutive quarters amid strong demand for artificial intelligence chips.

Speaking during an earnings call on Thursday, TSMC chief executive C. C. Wei confirmed that discussions with Elon Musk's venture were continuing, while drawing a distinction between a potential partnership and control of ma...