Musk rejects rumors of TSMC takeover of Terafab — Intel reaffirms 14A node deal as Musk floats cleanroom 'sublease'

What happened

Intel CEO Lip-Bu Tan told reporters on Wednesday (as reported on 7 October 2026) that Intel will remain part of Elon Musk's Terafab project. Back in April, Intel and Terafab, the semiconductor production venture by SpaceX, Tesla, and xAI, announced that the new chipmaker would use Intel's next-generation 14A fabrication process to make chips; details of the collaboration are still unknown, though there is a general understanding that Intel will license its manufacturing technology to Terafab, with unclear whether it will also help ramp up production on the node. Around the same time, Musk debunked rumors that his companies would invest in Terafab and then partner with TSMC, which would build and operate the fab, saying "No, we will build and run the fab," and proposing instead that TSMC sublease part of Terafab to make chips for its customers if it wants, "but nothing more than that." The sublease remains only Musk's proposal; the report notes his X statements are deliberately vague and raises questions about equipment qualification, IP isolation, and operational responsibility in such an arrangement.

Impact and signal

Affected components and suppliers

Source and time

Source: Tom's Hardware · 10/7/2026 · View original source