THE CRUNCH
Intel's work with Terafab, Elon Musk's planned Texas semiconductor project, will continue, according to Intel CEO Lip-Bu Tan. The confirmation follows reports that Terafab managers had opened talks with TSMC after questioning whether Intel could deliver on its promised excellence with the 14A node, which Terafab has reportedly wanted to license from Intel.
The arrangement, as described, keeps Intel technology at the core of the project for now. Intel's intellectual property would form the base of Terafab, potentially kickstarting production at the Texas campus where Musk plans a fresh wave of chip manufacturing on American soil.
TSMC's potential role is narrower than a full partnership. Musk said on X that everything at Terafab will be built and operated by the Terafab team, with TSMC not operating any capacity on its own but holding the option to sublease some. That suggests TSMC would not lend any node IP to the project, and could instead help with knowledge work in building and maintaining a fab, gaining extra manufacturing capacity in return.


