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Intel to keep working on Musk's Terafab chipmaking venture, Bloomberg News reports - Finance news and analysis from Global Banking & Finance Review
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Intel to keep working on Musk's Terafab chipmaking venture, Bloomberg News reports

Published by Global Banking & Finance Review

Posted on October 7, 2026

2 min read

· Last updated: October 7, 2026

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Intel Maintains Role in Elon Musk’s Terafab Chipmaking Project Amid TSMC Talks

Intel’s Continued Involvement and Industry Reactions

Oct 7 (Reuters) - Intel Corp will continue to work with Elon Musk on his Terafab project, Bloomberg News reported on Wednesday.

Key Details About the Terafab Collaboration

Here's what to know:

Intel’s Commitment to Terafab

• Intel will remain involved in the project, CEO Lip-Bu Tan told Bloomberg ahead of an event in Tokyo marking the US chipmaker's 50th year of operations in Japan.

Responses from Intel and Tesla

• Intel and Tesla did not immediately respond to requests for comment outside regular business hours.

Potential TSMC Partnership

• Last week, Tesla and SpaceX CEO Elon Musk said on X that there were discussions over potential cooperation between Taiwan chip major TSMC and his chipmaking project, Terafab.

Musk’s Statement on TSMC Talks

• Responding on X to a screenshot of an article headlined "TSMC Exploring Plans to Work With Elon Musk's TeraFab," Musk wrote on Saturday: "Just discussions, but something may come of it".

Implications for Intel’s Role

• A potential involvement by TSMC could likely challenge Intel's role in Terafab, as Musk weighs partners for the chipmaking venture.

Reporting Credits

(Reporting by Disha Mishra in Bengaluru; Editing by Janane Venkatraman)

Key Takeaways

  • Intel remains a committed partner in Terafab, confirmed by CEO Lip‑Bu Tan ahead of Intel’s Tokyo event (tomshardware.com).
  • Terafab, launched March 21, 2026, is a joint Tesla–SpaceX–xAI project to build a vertically integrated mega‑fab to produce over 1 terawatt/year of AI compute capacity (en.wikipedia.org).
  • Elon Musk has confirmed ‘just discussions’ with TSMC regarding potential collaboration, suggesting TSMC could become another candidate partner—posing competitive implications for Intel’s role (tomshardware.com).

References

Frequently Asked Questions

What is Intel's involvement in the Terafab chipmaking project?
Intel will continue working with Elon Musk on the Terafab chipmaking project, as confirmed by CEO Lip-Bu Tan.
Is TSMC joining Elon Musk's Terafab project?
TSMC and Elon Musk are currently having discussions about potential cooperation, but nothing definitive has been announced.
How could TSMC's involvement affect Intel's role?
A possible partnership with TSMC could challenge Intel's role as Musk considers partners for the Terafab chipmaking venture.
How did Intel confirm their involvement in the project?
Intel CEO Lip-Bu Tan confirmed the company's involvement ahead of their 50th anniversary event in Tokyo.
Have Intel and Tesla commented further on Terafab developments?
Both Intel and Tesla did not immediately respond to requests for comment outside regular business hours.

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