Elon Musk and Intel CEO Lip-Bu Tan pushed back Wednesday on doubts about Intel's role in the Terafab chip-making project, after weekend comments from Musk had wiped more than 5% off Intel's stock. Musk insisted Intel will build and run the fab, while Taiwan Semiconductor Manufacturing Co. could at most sublease part of it.
Musk and Tan moved to shut down speculation that Intel was being sidelined in Terafab, the chip-making venture Musk leads alongside Tesla and SpaceX. The pushback came after a weekend remark from Musk had already pressured Intel's stock.
Musk and Tan reassert Intel's role
Lip-Bu Tan told Bloomberg ahead of an event in Tokyo that Intel's involvement in Terafab will continue. Musk, responding on X to a post speculating that TSMC would take a larger role in the project, said Intel would build and run the fab, with TSMC able at most to sublease part of it.
Weekend comment rattled Intel shares
On Saturday, Musk had acknowledged that TSMC could take part in the Texas-based venture. That remark cost Intel more than 5% over Monday and Tuesday, though the stock rose around 1.5% ahead of Wednesday's open following the clarification. TSMC's U.S.-listed stock saw a 3% bump on Monday but slipped 1.6% ahead of Wednesday's open.
Terafab, jointly led by Tesla and SpaceX, was announced by Musk in March, with the companies pledging to manufacture 1 terawatt of computing capacity a year, twice what the entire United States needs. Musk first raised the idea of an Intel deal in November 2025 after saying his existing partners couldn't meet his chip demands, and Intel became the first company to back the project in April.
Why Terafab matters to Intel's rally
D.A. Davidson managing director Gil Luria told MarketWatch that Terafab excitement has been a big driver behind Intel's stock surge this year, as Intel has rallied more than 200% alongside similar gains at other chip makers amid demand for AI hardware. However, Luria warned that if Intel ends up without a role in the facility, or becomes just one of several fab tech providers, Luria said: "investors may reconsider the credit they gave Intel".
Source: MarketWatch
Trading involves risk.
Risk Disclaimer
