Elon Musk says Terafab will build and run its own chip factory - full stop, no TSMC takeover.
Intel CEO Lip-Bu Tan confirmed this week that Intel remains part of Terafab, the chipmaking venture backed by SpaceX, Tesla, and xAI, ahead of a company event in Japan. The reassurance came as Musk shot down rumors that his companies would simply fund Terafab and hand operations to TSMC. In an X post, Musk wrote that Terafab would "build and run" the fab itself, though he left the door open for TSMC to "sublease" part of the facility. Intel and Terafab announced their partnership back in April, with Terafab set to use Intel's upcoming 14A manufacturing process, though neither company has detailed exactly how that technology-sharing arrangement will work.
That matters because fabs aren't generic real estate you can sublet by the square foot. If Terafab is tooled and qualified around Intel's 14A process, retrofitting part of the building for TSMC's own node means separate equipment, separate contamination controls, and firm walls around Intel's licensed IP - exactly the kind of setup that invites disputes the moment a shared power or water system fails. It also raises an awkward question: why would a project meant to secure chip supply for SpaceX, Tesla, and xAI need to rent out space to a competitor at all?
Musk's "zero doubt" post reads less like a settled plan and more like a placeholder - verifiable details, as usual, still pending.