TLDR
- Intel CEO Lip-Bu Tan confirmed the company will stay involved in Elon Musk’s Terafab chip project.
- The comments came ahead of an event in Tokyo marking Intel’s 50th year of operations in Japan.
- Musk said TSMC may only sublease part of the Terafab facility, not take it over.
- Intel stock rose 2% to $114.95 in Wednesday’s pre-market trading.
- INTC stock is up roughly 205% year-to-date, according to Benzinga Pro data.
Intel (INTC) stock traded higher Wednesday after CEO Lip-Bu Tan confirmed the company’s continued role in Elon Musk’s Terafab chip project. The stock rose 2% in pre-market trading to $114.95.
Tan spoke with Bloomberg ahead of an event in Tokyo marking Intel’s 50th year of operations in Japan. He said Intel plans to keep working on the chipmaking venture.
Terafab is Musk’s attempt to build a chip production hub for AI and robotics. Intel signed on as a development partner back in April.
The project aims to produce one terawatt of computing capacity each year. Intel’s chip design, manufacturing and packaging skills were meant to support that goal.
Musk Clarifies TSMC’s Role
Investor sentiment around Intel wobbled after Musk said over the weekend that he was in early talks with Taiwan Semiconductor Manufacturing Co. about joining Terafab. The news raised questions about how much Intel would still be involved.
On Wednesday, Musk addressed the concern directly on X. He told Tesla analyst Herbert Ong that his companies will build and run the Terafab complex themselves.
Musk added that TSMC might only sublease part of the facility if it wants to. He said nothing beyond that arrangement is planned.
The clarification eased some of the worry about Intel getting pushed out of the project. Tan’s comments to Bloomberg reinforced that Intel still sees a path forward with Terafab.
Chip Demand Keeps Climbing
The Terafab push is part of a broader rush among governments and companies to boost chip production. Demand for AI hardware has strained supply chains well beyond semiconductors.
Factories making ball bearings, chip tools, industrial chemicals and slide rails are reportedly running at full capacity. That strain is pushing more companies to build new manufacturing lines.
Intel originally announced its Terafab partnership in April alongside Space Exploration Technologies Corp. and Tesla. The three companies framed the project as a way to meet the AI industry’s growing computing needs.
Intel’s role centers on its chip design and advanced packaging capabilities. The company has positioned itself as a manufacturing partner rather than the project’s sole owner.
INTC stock has had a strong run this year. The stock is up about 205% year-to-date, according to Benzinga Pro data.
That gain reflects renewed investor interest in Intel’s manufacturing business and its AI-related partnerships. The Terafab project is one of several bets tied to that story.
Intel stock rose 2.18% to $114.95 during Wednesday’s pre-market session. The move came directly after Tan’s comments were published.
Musk’s X post confirming his companies will run Terafab was posted at 7:33 AM Eastern on Wednesday. It had drawn over 4,000 replies within hours.
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