Intel to Continue Work on Musk’s Terafab Project

Intel will continue working with Elon Musk on the Terafab chipmaking project, Chief Executive Lip-Bu Tan told Bloomberg, as Musk has acknowledged preliminary discussions with Taiwan Semiconductor Manufacturing Co. about possible cooperation. The reports establish no signed agreement with TSMC or settled division of manufacturing work. Tan said Intel would remain involved in Terafab, according to the report of his comments ahead of an event in Tokyo. The project is associated with Musk’s companies Tesla, SpaceX and xAI and is planned for Texas. Intel’s specific responsibilities, financial commitments and production volumes have not been disclosed. Musk confirmed the TSMC discussions in a post on X on October 3, describing them as “just discussions” and saying something might come of them. That statement indicates talks, not an agreement. The available reporting does not establish what role TSMC might take, whether it would operate a facility or how its work would relate to Intel’s. Intel was announced as a Terafab partner in April and has been described as the project’s first and, until the TSMC discussions surfaced, only publicly named chip manufacturing partner.