Intel Stays Involved as Musk Says Terafab Talks With TSMC Continue

Intel will remain involved in Elon Musk’s proposed Terafab chip project, while discussions with Taiwan Semiconductor Manufacturing Co. (TSMC) continue without a finalized structure for the partnership.

Intel CEO Lip-Bu Tan said the company would keep working on Terafab before an event in Tokyo marking Intel’s 50th year of operations in Japan. His comments address questions about Intel’s role as Musk’s companies explore cooperation with TSMC.

Musk confirmed Oct. 3 that discussions with TSMC were underway, writing, “Just discussions, but something may come of it.” No final agreement or specific TSMC role has been announced.

Intel said in April that it was joining the Terafab project with SpaceX, xAI and Tesla. The company has described its contribution as covering chip design, manufacturing technology and advanced packaging. The project aims to produce 1 terawatt of computing capacity annually.

Tan said in Intel’s first-quarter 2026 earnings materials, “I can think of no better partners than Elon Musk.” He also said Intel was “excited to explore innovative ways to ‘refactor’ silicon process technology.”

Intel said early 14A design commitments were expected from the second half of 2026 into the first half of 2027. The companies have not disclosed the final legal or commercial structure of Intel’s Terafab involvement.