Intel CEO Reaffirms Commitment to Musk's Terafab Chip Project

Intel CEO Lip-Bu Tan said on Oct. 7 in Tokyo that Intel will continue to participate in Elon Musk's Terafab chip project and has not withdrawn. Intel signed on as a development partner in April 2026, and the remarks were seen as an attempt to ease market concerns about Intel's role in the project.

Earlier this week, Musk revealed that he had discussed potential cooperation with TSMC. He had previously ruled out TSMC's involvement in operating Terafab, but the renewed talks raised speculation that Intel's position could be affected if TSMC were to join. Intel shares briefly fell 3.9% after the news.

Terafab is Musk's plan to enter advanced chip manufacturing. Intel regards it as an important opportunity to participate in a new round of semiconductor capacity expansion. As governments and companies accelerate AI deployment, demand for chips and related components continues to grow, and the global semiconductor industry is expanding capacity while facing supply pressure across multiple parts of the supply chain. Bloomberg has reported that Musk has asked suppliers to move at "light speed" on the Terafab plan, with factories making items from ball bearings and chip equipment to industrial chemicals and rails running at full capacity, prompting companies to build new production lines.