Musk Rules Out TSMC Running Terafab as Intel CEO Says Chipmaker Will Stay On the Project

Elon Musk said Taiwan Semiconductor Manufacturing Co. will not run Terafab, the AI chip complex being developed by TSLA and SpaceX. "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 on X on Wednesday, pushing back on reports that TSM might own and operate the facility. On October 3, Musk had confirmed talks with TSMC, posting "Just discussions, but something may come of it."

Separately, INTC CEO Lip-Bu Tan told Bloomberg that Intel will keep working with Musk on Terafab, speaking ahead of a Tokyo event marking 50 years of Intel's operations in Japan. Intel joined the project in April as its first named partner, and how its role would work alongside any TSMC involvement has not been disclosed. No scope, dollar figure or timeline for Intel's part was given.

MarketWatch reported that Musk's confirmation of TSMC talks had weighed on Intel stock, and that Tan's comments eased concern TSMC could displace it. Intel fell 3.2% on Tuesday, rose about 2% in premarket trading Wednesday to $114.95, and traded at $113.79, up 1.1%, around midday. TSMC's U.S.-listed shares fell 1.3% in premarket trading.

Terafab is planned for Grimes County, Texas, with an initial $16.8 billion investment and potential spending of up to $119 billion across all phases, targeting over one terawatt of annual AI compute capacity. SpaceX has warned investors there is no guarantee the project will meet its objectives on schedule, or at all. The next signals to watch are any concrete scope for Intel's role, whether TSMC takes up a sublease, and construction milestones in Texas.