TLDR
- TSM stock dropped about 1% to near $476 Wednesday after Elon Musk said his own companies, not TSMC, will build and run Terafab.
- Musk wrote on X there is “zero doubt” SpaceX and Tesla will operate the AI chip facility, though TSMC could sublease space.
- Intel stock rose more than 1% to around $114 after CEO Lip-Bu Tan confirmed Intel’s continued role in the project.
- Terafab could cost up to $119 billion overall, with at least $55 billion set aside for the first phase.
- Wall Street keeps a Strong Buy rating on TSM stock, with an average price target implying about 13% upside.
Taiwan Semiconductor Manufacturing Company (TSM) stock fell more than 1% to about $476 early Wednesday. The move came after Elon Musk said his own companies, not TSMC, will build and operate the Terafab chip complex.
Taiwan Semiconductor Manufacturing Company Limited, TSM
Musk made the comment on X in reply to a Tesla-focused podcaster. He said there is “zero doubt” that SpaceX and Tesla will run the facility.
“Maybe TSMC subleases part of the Terafab if they want, but nothing more than that,” Musk wrote. The post appears to rule out a bigger part for the chipmaker in the project.
Musk officially announced Terafab back in March. The plant is designed to produce AI chips for Tesla and SpaceX’s AI unit.
In May, a public hearing notice put the total project cost at up to $119 billion. At least $55 billion of that is reserved for the first phase alone.
Earlier this week, Musk said he was in talks with TSMC about a possible partnership on Terafab. He called the discussions early, adding that “something may come of it.”
Wednesday’s post seems to close that door for now. TSMC’s part in the project looks limited to a potential sublease arrangement.
Intel’s Role in Terafab
Intel (INTC) stock rose more than 1% to around $114 Wednesday. The gain followed CEO Lip-Bu Tan confirming Intel’s continued role in the project, according to Bloomberg News.
Intel joined Terafab as a partner back in April. The plan calls for Tesla and SpaceX to use Intel’s 14A chipmaking process for their AI chips.
Intel has been trying to compete with TSMC in the contract chipmaking business. A larger foothold in Terafab would support that effort.
Intel’s stock had fallen about 5.7% this week before Wednesday’s bounce. The drop started October 5, right after Musk first confirmed talks with TSMC.
That earlier slide reflected investor worry that Intel’s part in the project might shrink. Wednesday’s comments from Tan and Musk calmed some of that worry.
What Wall Street Thinks of TSM Stock
Analysts remain upbeat on Taiwan Semiconductor stock despite Wednesday’s dip. The consensus rating stands at Strong Buy, based on seven Buy calls and one Hold over the past three months.
The average price target for TSM sits at $543.43. That figure points to roughly 13% upside from current levels.
Intel stock is up 205% in 2026 through Tuesday’s close. The Terafab project remains one of the bigger storylines pushing both stocks around this week.
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