Musk: TSMC Not Operating Terafab AI Chip Complex; Intel Continues Partnership

By EC Assets · Published 7 October 2026

Elon Musk has stated that Taiwan Semiconductor Manufacturing Company (TSMC) will not operate the Terafab AI chip complex. This announcement follows reports of potential discussions between Musk and TSMC regarding the significant semiconductor manufacturing project in Texas. Intel, meanwhile, is set to continue its involvement with Terafab. Intel has been the sole named chipmaker partner for Terafab for six months. Elon Musk's companies are developing the chip-manufacturing project in Texas. Tech industry discussions on Friday, October 2, confirmed Terafab talks between Musk and TSMC. Intel Chief Executive Lip-Bu Tan stated that Intel will continue its work with Elon Musk on Terafab. Terafab is a project focused on producing advanced semiconductors. Wall Street analysts had previously suggested that a potential deal between Elon Musk and TSMC involving Terafab could negatively impact Intel. Terafab is described as a large semiconductor factory that the tech CEO is building. This article is intended for informational purposes only. It does not constitute investment advice.