Intel CEO says company will stay in Musk's Terafab chip project
In short
Intel chief executive Lip-Bu Tan said Intel will continue to take part in Elon Musk's Terafab chip project, speaking in Tokyo before an event marking Intel's 50 years in Japan. The remark followed reports earlier in the week that Musk was in talks with TSMC about cooperating on Terafab, which IT Home said had hurt investor confidence in Intel. Intel shares rose 2.4% in premarket trading after reports it would stay in the project, according to CLS.
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Intel chief executive Lip-Bu Tan said the company will continue to take part in Elon Musk's Terafab chip project, according to reports citing Bloomberg. He made the remark in Tokyo, before an event marking 50 years of Intel's operations in Japan. [ 1 , 2 , 3 ]
The statement followed reports earlier in the week that Musk was in talks with TSMC about cooperation on Terafab. IT Home said the news hurt market confidence in Intel; cnBeta said Musk himself had stated he was negotiating with TSMC. Intel signed on as a development partner of Terafab in April this year, the two outlets reported. [ 2 , 3 ]
Market reaction was reported by CLS, which said Intel shares rose 2.4% in premarket trading after reports the company would remain in the chip manufacturing project. [ 4 ]
Terafab is described in the coverage as the billionaire's attempt to move into cutting-edge chip production. The project sits within a wider push by governments and companies to expand capacity for semiconductors and other components used to speed up the adoption of artificial intelligence, the tech outlets said. [ 2 , 3 ]
That push has spread beyond chips: factories producing ball bearings, chipmaking equipment, industrial chemicals and rails are all running at full capacity, prompting companies to build more production lines, according to the reports. [ 2 , 3 ]
Why it matters
Terafab is Musk's move into cutting-edge chip production, and Intel's role in it is being watched by investors: reports that Musk had also approached TSMC were enough to hit confidence in Intel, and its shares moved on news that Intel would remain involved. The project sits inside a broader global push by governments and companies to expand semiconductor and component capacity needed for AI, where suppliers from bearings to chipmaking equipment are described as running at full capacity.
Key facts
- Intel CEO Lip-Bu Tan said Intel will continue to work with Elon Musk on the Terafab chip project. [ 1 , 2 , 3 ]
- He made the remark in Tokyo, before an event marking 50 years of Intel's operations in Japan. [ 2 , 3 ]
- Reports earlier in the week said Musk was in talks with TSMC over cooperation on Terafab. [ 2 , 3 ]
- Intel signed on in April as a development partner of Terafab. [ 2 , 3 ]
- Intel shares rose 2.4% in premarket trading after reports that the company would stay in the project. [ 4 ]
- Terafab is described as Musk's attempt to enter cutting-edge chip production. [ 2 , 3 ]
- Factories making products from ball bearings to chipmaking equipment, industrial chemicals and rails are running at full capacity, prompting companies to build more lines. [ 2 , 3 ]
Confirmed by several sources
- Intel CEO Lip-Bu Tan said Intel will continue to participate in Musk's Terafab chip project. [ 1 , 2 , 3 ]
- Intel became a development partner of Terafab in April this year. [ 2 , 3 ]
- The statement was made in Tokyo ahead of an event marking 50 years of Intel's operations in Japan. [ 2 , 3 ]
- Reports earlier in the week linked Musk to talks with TSMC over Terafab cooperation. [ 2 , 3 ]
Still unclear
- Whether Musk's talks with TSMC have produced an agreement, and whether Intel's role in Terafab has changed in scope. IT Home says news of the talks emerged and cnBeta says Musk himself said he was in talks, but neither reports an outcome; the documents give no detail on how Intel's participation is affected.
- Details of the Terafab project itself, such as its location, timeline or investment scale. The documents describe Terafab only as Musk's push into cutting-edge chip production and do not give project specifics.
- The 2.4% premarket gain in Intel shares is reported by a single outlet and no time-of-day price context is given. Only document 4 states the share move.
What local media are saying
Timeline, local time
- CLS reports that Intel's CEO said the company will continue working with Musk on the Terafab project. [ 1 ]
- IT Home, citing Bloomberg, reports CEO Lip-Bu Tan's statement in Tokyo and notes earlier-week talks between Musk and TSMC over Terafab, which it says hit market confidence in Intel. [ 2 ]
- cnBeta reports the same statement and background, saying Musk had said earlier in the week that he was in talks with TSMC. [ 3 ]
- CLS reports Intel shares up 2.4% in premarket trading after reports the company will stay in the Terafab project. [ 4 ]