Elon Musk has confirmed that Taiwan Semiconductor Manufacturing Co. is in early talks to take part in Terafab, his planned Texas chip-making venture — a remark that sent Intel shares down and TSMC to a record high on Monday. Intel slid 2.6%, while TSMC's US-listed shares rose about 2.7% to an all-time closing high of $485.80, according to Dow Jones Market Data.
Intel had been Terafab's only named chip partner, signing on in April 2026, and some investors read Musk's comment as signalling fresh competition for the foundry business Intel is trying to rebuild. Intel Foundry reported only $293 million of revenue from outside customers in its most recent quarter.
Terafab was announced in March 2026 in Austin. Tesla and SpaceX have committed roughly $16.8 billion to the project, and Musk has described plans under discussion in which TSMC could directly own and operate a fab while SpaceX or Terafab contributes capital and signs binding minimum chip-purchase agreements.
The venture sits at the centre of a widening effort to onshore advanced chipmaking in the United States — and of Musk's own sprawling AI buildout. Its outcome matters both for Intel's foundry ambitions and for how much leading-edge capacity America can add without depending on Taiwan.
