Elon Musk Confirms TSMC Talks to Join $25 Billion Terafab Project

Key Facts

1Elon Musk confirmed that TSMC is in talks to join the Terafab chip manufacturing project in Texas.

2Intel shares fell 2% following hints that its exclusive manufacturing role in the project could become a shared one.

3Musk suggested TSMC chips would supplement Intel's production rather than replace it in the $25 billion project.

Elon Musk confirmed that TSMC is in talks to join the Terafab chip manufacturing project in Texas. According to investinglive.com, Intel shares fell 2% following hints that its exclusive manufacturing role in the project could become a shared one. Musk suggested that TSMC chips would supplement Intel's production rather than replace it in the $25 billion project.

INTC closed at $119.33 on October 2, 2026, while TSM closed at $484.565 on October 5, 2026. These developments occur as approximately $16.8 billion has been committed to the first phase of the project, which was previously expected to rely exclusively on Intel's 14A process technology. Meanwhile, TSLA closed at $378.7001 on October 5, 2026, and SPCX closed at $158.96 on October 2, 2026.