United States · Business news · AI & Tech · 05 Oct 2026
AI: Chips and hardware · Intel · TSMC — more AI news
Elon Musk confirmed on October 3 that TSMC is in discussions with Terafab, the Tesla and SpaceX chipmaking venture in Texas, about working together on manufacturing there. He described the talks as early, with nothing agreed. Two structures are being discussed: TSMC running the Texas plant with Terafab as its anchor customer, or TSMC supplying manufacturing know-how while other investors hold the majority. Intel shares fell about 4% on Monday. Intel became Terafab's first manufacturing partner in April, contributing its 14A process.
The finance angle is who gets paid to build and run a plant whose first phase carries about $16.8 billion of funding. Intel's foundry business has few large outside customers, and Terafab was one of the names attached to its 14A process; a role for TSMC would put the market leader inside the same project, which is why Intel's shares fell on talks that have produced no agreement. For TSMC it would be more US capacity tied to a customer that designs its own AI and vehicle chips. The terms, ownership and TSMC's eventual role are all undecided.
Reported by Crypto Briefing — “TSMC in early talks with Musk's Terafab on Texas chipmaking, Intel shares slide 4%” ↗ on 05 Oct 2026.
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