Intel is sticking to the plan. CEO Lip-Bu Tan told Bloomberg in Tokyo that the company will continue its work on Terafab, the chipmaking initiative backed by Elon Musk.
Why the sudden clarification? Because of a comment Musk made earlier this week. He said he’s in discussions with Taiwan Semiconductor Manufacturing Co. (TSMC) about collaborating on Terafab. That single sentence rattled Intel investors. They signed on as the development partner in April, and the prospect of TSMC entering the picture looks like a direct threat to their exclusive role.
Tan’s comment came before an event marking Intel’s 50th year in Japan. It’s a strategic repositioning. By publicly reaffirming the partnership, Intel is trying to calm the nerves of a market that was spooked by the TSMC angle. The Terafab project isn’t just a side gig; it’s part of a massive global push to build out semiconductor capacity for AI.
The supply chain is tight. Factories making everything from ball bearings to chip tools are running at max capacity. Companies are rushing to build new lines. Intel’s commitment here signals they’re betting big on being the go-to partner for this next wave of hardware demand, even if Musk is shopping around for extra help.