Intel will continue working with Elon Musk on the Terafab semiconductor project, according to Chief Executive Lip-Bu Tan.
The confirmation comes as investors assess reports that Musk is also in discussions with Taiwan Semiconductor Manufacturing Co. over a potential role in the project.
Intel joined Terafab as a development partner in April and, according to Tan, remains committed to the initiative.
Intel Remains Part of Musk’s Terafab Project
Concerns over Intel’s position emerged after Musk revealed that he had been holding talks with TSMC about possible collaboration on Terafab.
However, Tan said Intel will continue working on the project.
His comments came ahead of an event in Tokyo celebrating Intel’s 50 years of operations in Japan.
The statement suggests that potential involvement from TSMC does not necessarily mean Intel will be replaced.
Terafab Could Become a Major Semiconductor Project
Terafab is designed to produce advanced semiconductors and support some of Elon Musk’s largest technology businesses.
The project involves Tesla, SpaceX and xAI.
Current plans reportedly include two manufacturing facilities, each serving different parts of Musk’s technology ecosystem.
One Factory Could Supply Tesla Chips
One of the planned Terafab factories is expected to focus on semiconductor production for Tesla.
Those chips could be used in electric vehicles and humanoid robots.
Tesla continues to expand its investment in artificial intelligence, robotics and autonomous driving technologies, all of which require increasingly powerful processors.
Greater access to advanced semiconductor manufacturing could therefore become strategically important for the company.
Second Terafab Facility Targets AI Data Centres
The second planned factory is expected to support artificial intelligence data centres, including infrastructure that could eventually operate in space.
SpaceX and xAI are both expected to play important roles in this part of the project.
Terafab ultimately aims to support as much as one terawatt of computing capacity per year.
If achieved, that scale would make the project a significant part of Musk’s broader AI and computing infrastructure strategy.
TSMC Talks Add Another Major Chipmaker
TSMC is currently the world’s largest contract semiconductor manufacturer and plays a central role in producing advanced chips.
Musk’s discussions with TSMC therefore attracted attention over how responsibilities within Terafab could be divided.
Intel’s continued involvement suggests the project could potentially rely on several major semiconductor companies rather than a single manufacturing partner.
AI Demand Drives Global Semiconductor Expansion
Terafab is also part of a much broader expansion in global semiconductor manufacturing.
Technology companies and governments are investing heavily in new chip production capacity as demand for artificial intelligence infrastructure continues to rise.
AI models, data centres, autonomous systems and robotics require large quantities of advanced processors.
As a result, semiconductor manufacturing has become increasingly important for companies competing in the global AI industry.
Intel Looks to Maintain Role in AI Chip Expansion
Intel’s continued participation in Terafab could give the company another opportunity to strengthen its position in advanced semiconductor manufacturing.
The chipmaker is competing with major industry players such as TSMC as demand for AI computing capacity accelerates.
For now, Intel remains part of Musk’s Terafab plans even as discussions with additional semiconductor partners continue.
