Intel CEO Lip-Bu Tan told Bloomberg that Intel will remain involved in Elon Musk’s Terafab project, according to a Reuters report published October 7, 2026. That confirms continuity—not an exclusive role or a finalized division of work with other potential partners.
What Intel’s statement confirms
Reuters reported that Tan made the comment ahead of an event in Tokyo marking Intel’s 50th year of operations in Japan. His statement indicates that Intel’s participation is continuing, but it does not specify the work Intel will perform, a production schedule, or commercial terms. Reuters’ October 7 report attributed the statement to Bloomberg.
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What Terafab is intended to do
In March, Bloomberg reported that Musk described Terafab as an Austin project to be jointly run by Tesla and SpaceX, with the long-term aim of making chips for robotics, artificial intelligence and space data centers. Intel’s April announcement named SpaceX, xAI and Tesla as project partners. Intel characterized Terafab’s goal as reaching 1 terawatt of compute per year; that is an ambition, not demonstrated output or verified manufacturing capacity. Intel’s April announcement describes the project and the company’s participation.
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Intel said it would help “refactor silicon fab technology” and cited its capabilities in chip design, fabrication and packaging at scale. The public description does not provide a detailed work plan. Bloomberg’s April coverage explained that refactoring is a development stage that can help make chips more powerful or reliable. It does not establish which specific tasks Intel will own.
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Intel’s prepared Q1 2026 earnings remarks referred to external engagement around Intel 18A-P and 14A, but do not establish that either process has been selected for Terafab. The available public statements also do not settle a specific process node, factory assignment, ownership stake, supply commitment or production timetable.
Has TSMC joined Terafab?
Not on the evidence currently reported. Musk confirmed discussions with Taiwan Semiconductor Manufacturing Company (TSMC) about possible cooperation, but described them as discussions. Tom’s Hardware quoted his response: “Just discussions, but something may come of it.” That leaves open whether TSMC will participate and, if so, what role it might have. Tom’s Hardware’s October 2026 report covered Musk’s comment.
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TSMC discussions do not show that Intel has been displaced. Tan’s statement confirms Intel’s continued involvement, not exclusivity; the available reporting does not establish whether Intel and TSMC would contribute to the same parts of the project.
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- Whether TSMC will become a Terafab partner.
- How design, fabrication and packaging responsibilities would be divided among the companies.
- Which processes, facilities, ownership structure, schedule and chip volumes the project would use.
Until those details are announced, the clearest reading is that Intel remains involved while the project’s broader partner mix and operating arrangements remain unsettled.
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- Compatible with Intel 600-series (with potential BIOS update) or 700-series chipset-based motherboards
- DDR4 and DDR5 platform support cuts your load times and gives you the space to run the most demanding games
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- 20 cores (8 P-cores plus 12 E-cores) and 28 threads. Discrete graphics required
- Up to 5.6 GHz with Turbo Boost Max Technology 3.0 gives you smooth game play, high frame rates, and rapid responsiveness
- Compatible with Intel 600-series (with potential BIOS update) or 700-series chipset-based motherboards
- DDR4 and DDR5 platform support cuts your load times and gives you the space to run the most demanding games
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