Intel shares fell Monday after Elon Musk confirmed preliminary discussions with Taiwan Semiconductor Manufacturing Co. (TSMC) about a potential role in the Terafab semiconductor project.
Intel was announced as a partner in the venture earlier this year and expected to use its next-generation 14A manufacturing process. TSMC’s possible involvement has raised investor questions about Intel’s eventual role and potential revenue from the project.
Terafab aims to produce 1 terawatt per year of computing capacity for AI and robotics. Intel shares were down about 2% in morning trading as investors weighed the prospect of increased competition.