Intel shares fell more than 4 percent in premarket trading after news was confirmed that Terafab is in talks with TSMC, blockchain outlet Decrypt reported on Oct. 5 (local time).

Intel shares were trading around $114.43, down 4.1 percent, in U.S. Nasdaq premarket trading. The market reaction came after Elon Musk (일론 머스크) directly acknowledged the possibility that TSMC could take part in a Texas semiconductor project. Terafab is a project that Intel already joined. As expectations grew that another advanced chipmaker could join, attention focused on the possibility that Intel's role could be more flexible than previously expected.

The details of the talks were first disclosed on Oct. 2 by Tim Culpan (팀 컬팬). One structure he presented was for Terafab to become a major customer of a new Texas plant owned and operated by TSMC. Other structures were also being reviewed, the report said.

Musk wrote on X, formerly Twitter, the next day: "We're just in discussions, but something could come of it." So far, TSMC and Terafab have not announced an official agreement.

TSMC's potential investment in Texas was also mentioned separately. TSMC is known to have reviewed manufacturing investment in Texas separately from its Arizona expansion, but plans have not yet been finalised. TSMC did not comment on this.

Intel joined the Terafab project in April. Musk later said the project planned to use Intel's next-generation 14A process. At the time, assessments followed that the 14A process, a core of Intel's foundry strategy, had secured its first large customer.

But subsequent SpaceX filings to the U.S. Securities and Exchange Commission showed Intel's position was not fixed in the way typical long-term foundry orders are. SpaceX said it expected Intel to provide chip design, manufacturing and packaging expertise to Terafab, but explained that individual projects depend on separate negotiations and contracts.

In correspondence with the SEC, SpaceX said neither Tesla nor Intel is obligated to remain in the project, and a final contract may ultimately not be signed. That condition was read as meaning it remains open which manufacturer Terafab will allocate actual production volumes to.

Still, the TSMC talks do not mean Intel will be excluded. Musk also said TSMC's participation could complement Intel rather than replace it. The fact that Terafab is pushing unusually large production capacity also supports the possibility of participation by multiple manufacturers.

According to the Texas governor's office, Terafab's phase-one investment exceeds $16.8 billion. Project documents state total investment across four phases could reach about $119 billion. The facility aims to meet future computing demand of more than 1 terawatt from several companies led by Musk.

The drop comes after Intel's sharp surge this year. Intel closed at $119.33 on Oct. 4, and was up about 223 percent year-to-date as of that day. The premarket price of $114.43 is 19.6 percent below the 52-week high of $142.35, but still about 248 percent above the 52-week low of $32.89.

Meanwhile, Intel tokenised stock INTCB was trading at $114.46, down 3.67 percent over 24 hours, based on CoinMarketCap. The product trades 24 hours a day, making it difficult to compare directly with Nasdaq premarket moves.