Intel Shares Drop as Musk Hints at TSMC Terafab Partnership
Elon Musk confirmed discussions with TSMC regarding a potential partnership in Terafab, a semiconductor venture in Texas, causing Intel shares to decline.
Intel shares fell between 3% and 4% on October 5, 2026, after Elon Musk indicated that Taiwan Semiconductor Manufacturing Company (TSMC) could partner in Terafab. Musk responded to reports of the chipmaker's involvement by stating, "Just discussions, but something may come of it."
Terafab is a joint venture between Tesla and Space Exploration Technologies Corp. located in Grimes County, Texas. The project aims to produce specialized chips for Tesla's Optimus robots and Cybercabs, as well as space-based data centers for SpaceX, with potential spending reaching $119 billion. Intel joined the project in April, but investors reacted bearishly to the possibility of TSMC taking a larger role or operating the facility.
While TSMC has declined to comment on the specific partnership, its shares rose slightly following the news. The company is also considering a broader expansion of its presence in the United States through a potential new campus in Texas.
