On Wednesday, Elon Musk and Intel CEO Lip-Bu Tan moved to dispel rumors regarding Intel’s participation in the Terafab semiconductor venture. Speculation had mounted that Taiwan Semiconductor Manufacturing Co. (TSMC) might assume a more significant position in the massive chip-building initiative, causing volatility in Intel’s shares.
Tan confirmed to Bloomberg, prior to an event in Tokyo, that Intel’s involvement in Terafab would continue uninterrupted. Shortly after, Musk addressed the rumors directly on his social media platform, X, responding to a post suggesting TSMC would play a larger part.
“No, we will build and run the fab. Let there be ZERO doubt about that. Maybe TSMC subleases part of the Terafab if they want, but nothing more than that,” Musk wrote.
The clarification comes after Musk acknowledged on Saturday that TSMC could potentially participate in the Texas-based chip venture. That comment triggered a decline of more than 5% in Intel’s stock over Monday and Tuesday. However, shares rebounded approximately 1.5% ahead of Wednesday’s trading open. Conversely, TSMC’s U.S.-listed stock rose 3% on Monday before slipping 1.6% ahead of the Wednesday open.
Plans for Terafab, a joint effort between Tesla and SpaceX, were first announced by Musk in March. The companies pledged to manufacture one terawatt of computing capacity annually, a figure double the current total consumption of the entire United States. Musk initially floated the possibility of a partnership with Intel in November 2025, citing concerns that existing partners could not meet his growing chip demands. Intel became the first company to publicly support the project in April.
Gil Luria, a managing director at D.A. Davidson, noted that enthusiasm surrounding Terafab has been a primary catalyst for Intel’s stock performance this year. Intel shares have surged more than 200%, a gain mirrored by other semiconductor companies driven by demand for AI hardware.
“If the company ultimately doesn’t have a role in Musk’s chip-building facility or becomes just one fab tech provider, investors may reconsider the credit they gave Intel,” Luria told MarketWatch.
One terawatt annually sounds insane. If this actually works, it completely changes the global energy landscape for AI.
Zero doubt? That seems like a lot of emphasis. I wonder if TSMC subleasing is the real arrangement underneath.
Intel stock really bounced back fast. Good to see them keep their central role in such a massive project.