Intel’s role in Terafab is uncertain as rival TSMC has reportedly entered discussions to join the venture. Terafab aims to boost U.S. chip manufacturing for major clients, including Tesla and SpaceX.
TSMC already manufactures chips for Tesla, a relationship that could shift influence and workload away from Intel within the project.
The talks could affect Intel’s long-term story, which depends heavily on the success of its foundry business and demand from major AI and high-performance computing clients. Their outcome could clarify how much of Terafab—including its capacity share and process-node allocation—Intel will control, making it an important indicator for investors.
Separately, Mizuho analysts raised their price target on Intel to $114 from $92. They maintained a Neutral rating on the shares.