Shares of Intel dropped about 4% on Oct. 5 after Musk first confirmed early partnership discussions with TSMC, as Intel had been an earlier partner for the Texas project. TSMC is currently in a quiet period until Oct. 14 and has not provided an official response to the partnership rumors. The Taiwanese chipmaker is already spending $265 billion on a massive production expansion in Arizona to increase its footprint in the U.S.
Wednesday, October 21, 2026
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Musk to Build and Operate Texas Terafab and Reject TSMC Management
Tech14 days ago
The founder of Tesla and SpaceX will take sole control of the development and execution of the semiconductor plant in Texas, rejecting reports that terms would allow a partner to run the site. Elon Musk stated his ventures will build and operate the Terafab facility and that there should be "zero doubt" about that, limiting any involvement by TSMC to subleasing a portion of the campus. The clarification comes after reports that TSMC was exploring owning and operating the Texas site to support compute hardware demands for xAI and other Musk businesses.
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