Musk and Intel CEO Clarify Intel Will Build and Run Terafab, TSMC Role Limited to Possible Sublease

Elon Musk and Intel CEO Lip-Bu Tan on Wednesday pushed back against speculation that TSMC would take a leading role in the Terafab AI chip project. Musk stated Intel will build and run the fab, with TSMC possibly subleasing space but nothing more. Tan confirmed Intel's continued involvement. Intel shares had fallen over 5% earlier this week after Musk acknowledged TSMC talks, but were flat to slightly higher in premarket Wednesday, outperforming a broader chip-sector decline. Intel remains up more than 200% year-to-date, driven partly by Terafab excitement, though analysts warn that any diminished role could cause investors to reassess the stock's valuation.