Intel CEO Lip-Bu Tan has stated the company will keep working on Terafab, directly addressing speculation about the future of the advanced manufacturing project.

The statement carries particular weight because of what Elon Musk said about the facility's ownership structure. Musk confirmed that TSMC may only sublease part of the fab rather than own it.

That distinction matters. A sublease keeps ultimate control of the facility with Intel, while limiting TSMC's role to operating a defined portion of the site. For an industry tracking how Intel funds and fills its leading-edge capacity, the difference between ownership and a sublease defines who bears capital risk and who captures manufacturing output.

What did Lip-Bu Tan commit to?

The Intel chief executive said the company will continue working on Terafab. The comment sets a clear direction for the program after weeks of questions about whether external partners would absorb parts of Intel's manufacturing footprint.

Key elements of the situation:

• Intel remains engaged on Terafab development, per Lip-Bu Tan.
• TSMC's potential involvement is limited to a sublease of part of the fab, according to Musk.
• TSMC would not take ownership of the facility under the arrangement Musk described.

Why does the sublease detail matter?

Musk's confirmation narrows the range of possible deals. Earlier reporting had left open whether TSMC might acquire capacity outright or hold an equity stake in Intel's fabs. A sublease implies a contractual, revocable arrangement rather than a structural transfer of assets.

For Intel, that preserves the underlying asset while bringing in a tenant with deep leading-edge process expertise. For TSMC, it offers access to capacity without the balance-sheet commitment of ownership — a lighter footprint in a market where capital expenditure discipline dominates strategic planning.

The arrangement, as described, also answers a question customers and suppliers have raised: who actually controls the fab. Under a sublease, Intel retains ownership; TSMC operates only the portion it leases.

Who said what?

Lip-Bu Tan, Intel's CEO, said the company will keep working on Terafab. The statement positions Intel as an active developer of the project rather than a seller of it.

Elon Musk confirmed the ownership question separately, stating that TSMC may only sublease part of the fab, not own it. His comment is the clearest public description so far of the structure under discussion.

What happens next?

Neither Intel nor TSMC has publicly detailed terms, timelines or the specific portion of the fab a sublease might cover. Musk's phrasing — "may only sublease" — leaves room for the arrangement to evolve before anything is finalized.

The market will watch for three signals: any formal agreement between Intel and TSMC, the scope of capacity a sublease would include, and whether Intel commits further capital to Terafab beyond what Tan has already indicated.

For now, the record shows two facts. Intel intends to keep building. TSMC, if it participates at all, participates as a tenant — not an owner.