Analyst: Intel-Musk Terafab Partnership Poses Bigger Threat to TSMC Than Musk Alone

Seaport Research Partners senior semiconductor analyst Jay Goldberg said the real threat to TSMC is not Musk building advanced chips himself, but Intel partnering with Musk on Terafab, which turns a solo challenge into a combined "Intel plus Musk" front. "If I'm TSMC, I'm not worried about fighting Elon. I'm worried about having to hold off Intel plus Musk, because Intel alone worries me enough," Goldberg told Benzinga. He said Intel's manufacturing strength could accelerate Terafab's competitiveness, though its exact role remains unclear. Musk said in April that Terafab plans to use Intel's next-generation 14A process. Goldberg cautioned that Musk's insistence on retaining IP control may clash with Intel's traditional foundry model, and warned Intel against betting on Musk's long-term commitment. "If I'm Intel, I'd worry: will Musk get bored in two years?" Goldberg previously estimated Terafab could start running by 2028, with commercial-scale production possibly slipping to 2030. Musk said Wednesday at an earnings call that Terafab could ultimately cost over $100 billion.