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The Terafab drama continues
Intel isn’t walking out of the Terafab story after all. CEO Lip-Bu Tan told Bloomberg the company will remain part of Elon Musk’s project, which is meant to let Tesla and SpaceX build AI chips in-house instead of leaning entirely on outside foundries.
Why traders are watching
That matters because Musk also said he’s holding talks with Taiwan Semiconductor Manufacturing Co. about collaborating on the venture. Translation: the project may be getting bigger, but Intel investors are trying to figure out whether the pie is growing or whether Intel’s slice is about to get thinner.
A bigger chip stampede
The backdrop here is the same old AI-fueled manufacturing squeeze: everyone wants more chips, more tools, more capacity, yesterday. So even though this sounds like a single-company headline, it’s really about the arms race to secure chip production muscle.
- Intel says it remains in the deal
- Musk is also talking to TSMC
- The market is trying to handicap who ends up making what
Big picture: if Terafab becomes a real production pipeline instead of just a very expensive group chat, Intel could win more strategic relevance. If not, this is just another episode of semiconductor soap opera.