Key facts
- Intel stock fell 3% to $115.31 on Monday.
- Elon Musk hinted at a potential partnership between his Terafab project and TSMC.
- TSMC shares increased by approximately 1% on Monday.
- Intel joined the Terafab project in April.
Intel's stock experienced a 3% decline, reaching a low of $115.31 at the start of the week, following a weekend social media post by Tesla CEO Elon Musk. Musk responded to a report suggesting that Taiwan Semiconductor Manufacturing Company (TSMC) could collaborate with Terafab, a planned semiconductor plant being developed by Musk's companies including Tesla, SpaceX, and Intel.
Musk's comment, "Just discussions, but something may come of it," on a post sharing the report, led to a market reaction that spooked investors. The possibility of TSMC, a major rival to Intel in chip manufacturing, playing a significant role in the Terafab project could diminish Intel's expected benefits. TSMC shares saw a modest increase of about 1% on Monday.
Intel had joined the Terafab project in April, which had previously boosted its stock. However, a potential deal with TSMC could elevate the Taiwanese chip giant's position in the project. According to tech journalist Tim Culpan of Culpium Research, the most likely scenario involves TSMC owning and operating the new factory.