Intel stays in Musk’s Terafab chip venture despite TSMC talks Proactive Wed, October 7, 2026 at 9:15 AM EDT 2 min read INTC +1.93% TSM -1.47% TSLA -1.40% SPCX -2.11% INL Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Intel Corp (NASDAQ:INTC, XETRA:INL) (Intel Corp (NASDAQ:INTC, XETRA:INL), Intel Corp (NASDAQ:INTC, XETRA:INL)) will remain involved in Elon Musk's Terafab semiconductor project, easing concerns that Taiwan Semiconductor Manufacturing Company could displace the US chipmaker from the planned Texas facility.
Intel chief executive Lip-Bu Tan confirmed the company's continued participation on Wednesday after Musk's disclosure that he was holding early-stage discussions with TSMC about a potential role in Terafab, reported Bloomberg.
Musk later clarified that his companies would build and operate the facility, while TSMC could potentially lease part of the site without taking control of its operations.
The clarification followed a sell-off in Intel shares after Musk's initial comments raised concerns among investors that TSMC could assume a larger role in a project that Intel was the first company to support.
Terafab is a joint venture between Tesla and SpaceX designed to manufacture chips for artificial intelligence and robotics, with the companies targeting 1 terawatt of annual computing capacity.
Tesla and SpaceX initially committed $16.8 billion to the project and plan to employ at least 3,000 people at the Texas site, while total spending across its phases could reach $119 billion.
The chips are intended for Tesla's Optimus humanoid robots and Cybercab vehicles, as well as SpaceX's planned space-based data centers, highlighting Musk's effort to control more of the hardware needed by his businesses.
Musk has previously indicated that Intel's 14A manufacturing process would form the technological backbone of Terafab, giving Intel a major role in producing the facility's advanced chips.
TSMC's possible involvement comes as the Taiwanese chipmaker considers expanding its US manufacturing footprint beyond its $265 billion Arizona investment, including a potential Texas campus.
