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Intel will continue working with Elon Musk on Terafab, Chief Executive Lip-Bu Tan told Bloomberg, signaling that the chipmaker remains involved in the planned semiconductor project even as Musk explores possible cooperation with Taiwan Semiconductor Manufacturing Co. (TSMC). The project, planned for Texas, is intended to produce advanced chips for Musk’s businesses.
The remarks, reported Wednesday, October 7, leave open how Intel and TSMC might fit into the venture. Musk said the previous week that discussions with TSMC were taking place, but neither company disclosed specific terms or a division of responsibilities. Later Wednesday, Musk said Tesla and SpaceX would build and run the complex, with TSMC potentially able to sublease part of it.
Intel says its work will continue
Tan’s comments were reported by Bloomberg ahead of an event in Tokyo marking the 50th year of Intel’s operations in Japan. The available report did not specify which parts of Terafab Intel is working on, whether its role has changed, or what commitments have been made by either side.
Intel signed on as a development partner in April, according to the Bloomberg-based report. That established the chipmaker’s involvement before Musk publicly acknowledged discussions with TSMC. Tan’s statement confirms continued participation, but does not settle whether Intel will supply manufacturing technology, operate facilities, or perform other work under a finalized arrangement.
Musk says his companies will run the complex
Reuters reported Wednesday that Musk said Tesla and SpaceX would build and operate Terafab. He responded to an online post suggesting TSMC might own and run the facility by rejecting that scenario, while allowing that the Taiwanese chipmaker could sublease part of the project. The comments offer a distinction between TSMC potentially participating and having control of the complex.
Musk’s remarks followed his confirmation the prior week that discussions with TSMC about possible collaboration were underway. No details were disclosed about their scope, and TSMC and Intel had not immediately responded to Reuters’ requests for comment, Reuters reported. The public statements do not establish that TSMC has agreed to join the project.
Two planned factories, but few disclosed specifics
The Bloomberg-based report described Terafab as involving Tesla, SpaceX and xAI, and said the plan includes two factories: one for chips used in Tesla vehicles and humanoid robots, and another intended to support AI data centers in space. It gave the project an eventual target of one terawatt of computing capacity a year.
Those figures describe an ambition, not current production. The report did not provide a construction timetable, investment amount, production start date, or expected manufacturing capacity for either factory. Nor did it identify which company would provide equipment, process technology or day-to-day factory operations.
Partner roles remain unresolved
TSMC’s possible involvement has drawn attention because the company is a major chipmaker and Intel is already identified as a Terafab partner. But the available reports do not establish that the two companies are competing for an exclusive contract, or that TSMC’s discussions would displace Intel. Musk’s statement that his companies intend to run the complex also leaves unanswered what operational or technical role outside chipmakers could play.
The next confirmed step is not a disclosed project milestone, but further clarification from the companies: no detailed agreement, schedule or allocation of work was announced in the reports. For now, Tan says Intel will remain involved, Musk says his companies will build and run Terafab, and the nature of TSMC’s potential participation remains unsettled.
