Intel slides ~4% premarket as Musk confirms TSMC in talks to join Terafab chip venture
What happened
Elon Musk confirmed on Saturday in an X post that Taiwan Semiconductor (TSMC) is in discussions to join his Terafab chip venture, writing 'Just discussions, but something may come of it' in response to a report from Asian tech Substack Culpium saying TSMC was exploring how to help run Terafab's Texas semiconductor factories. Intel shares slid about 3.7-4% premarket to $114.95 on Monday, snapping a run that had the stock up 25% over the prior month, while TSMC's U.S. shares climbed 1.8% and its Taiwan shares rose ~3%. Oppenheimer semiconductor analyst Rick Schafer wrote Monday that Intel is currently slated to supply its 14A process to Terafab — 'a role TSMC's own nodes could replace' — with one option having TSMC own and run a fab serving only Tesla, SpaceX, and xAI while SpaceX invests or commits volume. Musk later acknowledged that any TSMC chips would likely supplement, not replace, Intel's role.
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Start your free 14-day trialWho’s affected
- Intel (INTC) — Terafab partner facing possible dilution of its role; shares fell 3.7-4%+ premarket to ~$114.95 after a 25% one-month run
- TSMC (TSM) — potential Terafab participant; U.S. shares +1.8% premarket, Taiwan shares +3%
- Tesla (TSLA) — Terafab co-lead with SpaceX; any fab economics directly affect its chip supply
- Semiconductor foundry sector — read-through on who captures Musk's planned 1-terawatt-per-year compute manufacturing