Intel Confirms Advancement of Musk's "Terafab" Chip Plan Amid Stock Price Pressure

As its share price faces pressure, the latest remarks by Intel CEO Pat Gelsinger may help ease market concerns over Intel's role in the Terafab collaboration.

On October 7, according to Bloomberg, Pat Gelsinger stated in an interview in Tokyo that Intel will continue to participate in Terafab. Intel signed on as a development partner for the project in April this year, and his latest comments indicate that, despite recent changes in the collaboration, Intel has not withdrawn from the project.

The new uncertainty arises from TSMC. Earlier this week, Elon Musk revealed he is in talks with TSMC about potential collaboration on Terafab. Previously, Musk had excluded the possibility of TSMC operating Terafab; now with cooperation discussions resuming, it has raised market concerns over whether TSMC's possible involvement will impact Intel's role in the project. Following the news, Intel's share price once fell by 3.9%.

Terafab is Elon Musk’s initiative to enter the cutting-edge chip manufacturing sector and is also an important cooperation project for Intel to participate in the latest wave of semiconductor capacity expansion. Currently, as governments and enterprises accelerate AI deployment, demand for chips and related components continues to rise. The global semiconductor industry is ramping up capacity, with several sectors of the supply chain facing supply pressures.

Bloomberg previously reported that Musk has asked suppliers to push forward the Terafab plan at "light speed." Right now, factories for items such as ball bearings, chip manufacturing equipment, industrial chemicals, and rails are all running at full capacity, prompting companies to speed up the construction of new production lines.