Intel (INTC): CEO says it stays in Musk's Terafab amid TSMC fears | Oct 8, 2026

Kind: captions Language: en Intel Chief Executive Lip Bu Tan told Bloomberg on Wednesday that Intel will stay in a Elon Musk's Terafab chip project. Investors had worried that Taiwan's TSMC could displace Intel from the planned Texas plant. The worry began when Musk said he was holding early-stage talks with TSMC about a possible role in Terafab. Musk has since clarified his plan. He said his companies would build and operate the facility. TSMC could potentially lease part of the site without taking control of its operations, he said. Terafab is a joint venture between Tesla and SpaceX to make chips for artificial intelligence and robotics. The two companies initially committed $16.8 billion to it. Yahoo Finance Canada reports that total spending across its phases could reach $119 billion. Intel has a major role in that plan. Musk has previously indicated that Intel's 14A manufacturing process would form Terafab's technological backbone. Intel was also the first company to support the project. Intel shares sold off after Musk's first comment. According to Seoul Economic Daily, the stock fell 5.7% over 2 days. On Wednesday, Benzinga said the shares were up 0.32% at $112.86 at the time of its report. Seoul Economic Daily also quoted D.A. Davidson analyst Gil Luria. He said investors could reassess Intel if it ends up as just one of several technology providers. TSMC role is not settled. Yahoo Finance Canada reports TSMC is considering expanding its US manufacturing beyond its $265 billion Arizona investment, including a potential Texas campus. Tan's position for Intel is that it stays in Terafab.