Intel (INTC) fell as much as 4% after Elon Musk confirmed his Terafab chip-manufacturing venture is in discussions with Taiwan Semiconductor Manufacturing Co. (TSMC). [3, 4, 5, 15] The talks cast uncertainty on Intel’s previously announced role as the project’s only named manufacturing partner. [3, 4]
The market reaction was largely limited to Intel, pointing to concerns about its position rather than a broader semiconductor downturn. [3] AMD dipped slightly, while Nvidia shares held steady. [3]
In April, Intel’s partnership with the venture—which involves Tesla, SpaceX, and xAI—was seen as a major vote of confidence in its foundry services and next-generation chip technology. [4, 11]
Musk described the TSMC talks as preliminary, saying, “Just discussions, but something may come of it.” [6, 10] The possibility of TSMC’s involvement has unsettled investors who expected Intel to be the exclusive manufacturing partner in the multibillion-dollar Texas project. [4, 6]