Intel Stays in Musk's Terafab Project Despite TSMC Talks

Intel is maintaining its partnership in Elon Musk's semiconductor manufacturing project, according to a Bloomberg report, even as discussions unfold with Taiwan Semiconductor Manufacturing Company. The commitment offers a foothold for Intel as the venture takes shape amid industry negotiations.

"No, we will build and run the fab. Let there be ZERO doubt about that," Elon Musk wrote on X regarding potential involvement from TSMC, adding that "Maybe TSMC subleases part of the Terafab if they want, but nothing more than that."

The Terafab Semiconductor Initiative

Intel originally joined the collaborative project as a development partner in April, according to a Yahoo Finance report. The Terafab venture brings together resources from Tesla, SpaceX, and xAI to concentrate on specialized semiconductor manufacturing designed for artificial intelligence workloads and other computational applications.

The initiative is structured around two major fabrication facilities. Organizers have set a performance target for the undertaking, aiming for an aggregate annual computing capacity of one terawatt.

Market Valuation and Share Performance

These manufacturing plans intersect with Intel's market trading. In recent Finnhub market data as of October 9, 2026, Intel Corp (NASDAQ: INTC) stock traded at $104.70, down 2.22% for the session.

What the Project Means for Chip Supply

The participation of a legacy silicon manufacturer alongside Musk-led enterprises highlights changing methods in specialized hardware production. By attempting to construct dedicated fabrication capacity at a large scale, the venture seeks to insulate its artificial intelligence infrastructure from traditional industry bottlenecks.

At the same time, maintaining ties with established firms like Intel provides technical backing as the project navigates the capital-intensive reality of building advanced semiconductor foundries from the ground up.