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Intel will continue working with Elon Musk on the Terafab chipmaking venture, Bloomberg News reported on Wednesday. Intel CEO Lip-Bu Tan confirmed the company’s continued involvement ahead of an event in Tokyo marking Intel’s 50th year of operations in Japan.
The confirmation comes days after Musk said his companies were discussing potential cooperation with Taiwan Semiconductor Manufacturing Co. (TSMC). The talks had raised questions about whether the world’s largest contract chipmaker could challenge Intel’s position in the project.
Musk confirmed the TSMC discussions on X over the weekend. He said the companies were in discussions and suggested that a deal could eventually emerge. However, no formal agreement between TSMC and Terafab has been announced.
Reports have suggested several possible structures for TSMC’s involvement. One proposal could see TSMC own and operate a dedicated facility for Musk’s companies, with SpaceX providing investment or committing to production volumes.
The potential arrangement does not necessarily mean Intel would leave the project. Analysts have also pointed to the possibility of multiple chipmaking partners supporting Terafab.
Intel joined the Terafab initiative in April. Musk’s broader plan involves securing semiconductor production for businesses including Tesla, SpaceX and xAI.
The project was positioned as an effort to address the growing chip requirements of Musk’s companies, particularly as demand for AI computing, autonomous systems and other advanced technologies increases.
Intel had been closely associated with the venture’s manufacturing plans. Musk previously indicated that Terafab could use Intel’s 14A process technology, allowing Intel to demonstrate its advanced foundry capabilities. The project is significant for Intel because the company is trying to expand its contract
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