Shares of Taiwan Semiconductor Manufacturing Company (TSM) fell more than 1% to about $476 in early trading on Wednesday, after Elon Musk said his own companies — not TSMC — will build and operate the Terafab chip complex. The move reflects how closely investors track TSMC's footprint in large-scale AI chip projects: the foundry giant fabricates chips for many of the biggest names in technology, including Apple and Nvidia.

Musk made the comment on X, the social media platform he owns, in reply to a Tesla-focused podcaster. He said there is “zero doubt” that SpaceX and Tesla will run the AI chip 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 larger role for the world's largest contract chipmaker in the project.

Musk officially announced Terafab back in March. The plant is designed to produce AI chips for Tesla as well as for SpaceX's AI unit. In May, a public hearing notice put the total cost of the project at up to $119 billion, with at least $55 billion of that amount reserved for the first phase alone — a figure that would put Terafab among the largest chip-manufacturing projects ever announced.

Earlier this week, Musk had said he was in talks with TSMC about a possible partnership on Terafab. He described the discussions as early, adding that “something may come of it.” Wednesday's post appears to close that door for now, leaving TSMC's involvement in the project limited, at most, to a potential sublease arrangement.

Intel's Role in Terafab

Intel (INTC) stock rose more than 1% to around $114 on Wednesday. The gain came after Intel Chief Executive Lip-Bu Tan confirmed the company's continued role in the project, 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 — the company's next-generation manufacturing node. Intel has been trying to compete with TSMC in the contract chipmaking business, where winning large external customers is central, and a larger foothold in Terafab would support that effort.

Intel's stock had fallen about 5.7% this week before Wednesday's rebound. The decline began on October 5, right after Musk first confirmed the talks with TSMC. That earlier slide reflected investor concern that Intel's role in 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 despite Wednesday's dip. The consensus rating on the stock stands at Strong Buy, based on seven Buy calls and one Hold issued over the past three months. The average price target for TSM sits at $543.43, a figure that points to roughly 13% upside from current levels.

Intel stock, meanwhile, is up 205% in 2026 through Tuesday's close. The Terafab project remains one of the bigger storylines moving both stocks this week, and any further signals on TSMC's potential sublease role or Intel's 14A commitment are likely to keep both names in focus.

This article originally appeared on CoinCentral.