Elon Musk clarifies Terafab ownership as Intel remains involved

Elon Musk has clarified the operational structure of Terafab, the massive chip manufacturing project planned by Tesla and SpaceX in Texas. Responding to speculation that Taiwan Semiconductor Manufacturing Company (TSMC) might own or operate the facility, Musk stated on X, “No, we will build and run the fab. Let there be ZERO doubt about that.” He noted that while TSMC might sublease part of the space, the primary control, equipment decisions, and daily operations will remain with his companies.

Intel remains a key participant in the project. Despite discussions between Musk and TSMC, Intel has confirmed its continued engagement with Terafab, which is seen as a potentially significant driver for the Intel Foundry segment. This involvement comes as Intel reports a 31% revenue increase in its Foundry division, though the segment continues to face high losses.

Terafab was unveiled as a joint venture between Tesla, SpaceX, and xAI to address the growing demand for computing power. The project aims to produce enough chips to supply approximately one terawatt of computing power annually, addressing concerns that current suppliers cannot scale quickly enough to meet future AI and technological needs.