Intel's stock price declined following discussions regarding Taiwan's TSMC potentially participating in Elon Musk's large-scale semiconductor foundry project, "Terafab."

According to MarketWatch on the 6th local time, Tesla and SpaceX CEO Elon Musk shared a report via X (formerly Twitter) indicating that TSMC is exploring ways to cooperate on the Terafab plant, adding, "Just discussions. But something might come of it," leaving the possibility open.

Previously, it was known that Intel would be the sole participant in the Terafab project led by Tesla and SpaceX, and Intel was simultaneously pointed out as the biggest beneficiary of this project.

However, as Musk directly hinted at cooperation with TSMC, investors were unsettled.

The previous day, Intel's stock fell by 2.65%, while TSMC's stock rose by 2.7%, reaching a record closing high of $485.80 per share.

Intel fell an additional 2.6% during trading that day as well.

Gil Luria, an analyst at investment bank D.A. Davidson, said, "If Intel does not participate or is merely one of several foundry technology providers, investors may reevaluate Intel."

Some analyses suggested that CEO Musk deliberately mentioned TSMC to negotiate unit prices with Intel.

Luke Rahbari, CEO of Equity Armor Investments, pointed out this possibility, noting that given the U.S. government's investment in Intel, "it is unlikely that Intel will be replaced to a significant extent."

Terafab is considered Musk's artificial intelligence (AI) semiconductor base.

It is a facility that produces semiconductors required for various businesses of SpaceX and Tesla, such as aerospace, AI, and robotaxis, with the goal of manufacturing chips on a scale of 1 terawatt (TW) annually.

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