Intel falls over 4% as TSMC explores Terafab partnership

Intel shares dropped more than 4% in premarket trading on Monday, October 5, 2026. The move followed reports that Taiwan Semiconductor Manufacturing Co. is in discussions to collaborate with Elon Musk's Terafab project in Texas, challenging Intel's standing as the project's only previously named manufacturing partner.

Intel joined Terafab in April 2026, with its upcoming 14A node designated as the facility's sole named process technology. Musk confirmed on X on Sunday, October 4, that talks with TSMC are real but early, stating: "Just discussions, but something may come of it." Culpium reported on Friday, October 2, that TSMC could own and operate the site, where Terafab would serve as an anchor customer, similar to TSMC joint ventures in Japan and Germany.

SpaceX and Tesla are developing Terafab in Grimes County, Texas, about 100 km northwest of Houston, with production intended exclusively for Tesla, SpaceX, and xAI. An August 6 announcement committed $16.8 billion for the initial phase, and county filings show a potential total cost of up to $119 billion across multiple phases. For TSMC, whose NYSE-listed ADR rose 1% and whose Taiwan-listed shares gained 3% on Monday, any agreement would come on top of $265 billion already committed to its 12-facility Arizona complex.

Adding to pressure on Intel, Susquehanna analysts reported on Monday that the company likely lost CPU model share in the third quarter. Susquehanna estimates Intel's laptop model share fell 3.9% quarter over quarter to 68.1%, while AMD rose 3.1% to 29.3% and Qualcomm reached a record 2.2%. In desktops, Intel's model share fell 1.6% quarter over quarter to around 76%, its lowest mark in the study since the second quarter of 2023. Intel's 18A-based Panther Lake processor accounted for about 1.8% of Intel laptop SKUs, up from 0.4% in the previous quarter.