Intel remains involved in Musk’s Terafab project

Intel CEO Lip-Bu Tan confirmed that Intel’s collaboration with Elon Musk’s Terafab project will continue, even as Terafab holds talks with TSMC. Terafab has been seeking to license Intel’s 14A node and potentially other technologies for a planned Texas campus intended to support semiconductor manufacturing in the United States.

TSMC entered discussions after Terafab managers questioned whether Intel could deliver the expected node performance with 14A. Intel remains central to the project for now, with its IP expected to serve as the base for Terafab’s operations.

TSMC is not expected to operate capacity independently or contribute node IP. Musk said on X that Terafab’s team will build and run the facilities, while TSMC may have the option to sublease some capacity. The arrangement could give Terafab access to TSMC’s expertise in fab construction and maintenance while offering TSMC additional manufacturing capacity.