Key points
- Musk says TSMC could sublease space at Terafab, nothing more
- Intel plans to stay on the project, its CEO says
- TSMC shares fell in early trading
Elon Musk said Taiwan Semiconductor Manufacturing Co. (TSM) won't run Terafab, the chip factory SpaceX (SPCX) is building in Texas. "No, we will build and run the fab. Let there be ZERO doubt about that. Maybe TSMC subleases part of the Terafab if they want, but nothing more than that," Musk wrote on X early on October 7.
Intel (INTC), which joined Terafab as its development partner in April, will stay involved in the project, chief executive Lip-Bu Tan told Bloomberg before an event in Tokyo marking Intel's 50th year of operations in Japan. The outlet reported that Musk's talks with TSMC had hurt investor sentiment around Intel.
Musk rules out TSMC running Terafab
Tim Culpan of the newsletter Culpium reported on October 2 that TSMC was exploring ways to help run Terafab's factories. "The most likely scenario is for TSMC to try to own and operate the new factory," he wrote, adding that the plans "are not set in stone."
Musk acknowledged discussions a day later. "Just discussions, but something may come of it," he wrote on October 3.
TSMC shares fell in early trading
As of 10:13 a.m. ET on October 7, TSMC's US-listed shares were down 1.8% at $473.63, from a $482.30 close. Intel was up 1.1% at $113.69, and SpaceX was down 2.5% at $167.55.
SpaceX is building Terafab in Grimes County, Texas, to supply Musk's companies. Texas Gov. Greg Abbott announced in August that SpaceX would spend $16.8 billion on the first phase, with $55 billion to $119 billion planned across up to four phases.
