Intel Confirms Advancement of Musk's "Terafab" Chip Plan Amid Stock Price Pressure
Intel CEO Pat Gelsinger stated that the company will continue to participate in Elon Musk's Terafab project. Previously, Musk revealed ongoing discussions with TSMC about potential collaboration, which raised market concerns over Intel's position in the project. As a result, Intel's stock price once dropped by 3.9%.
As its share price faces pressure, the latest remarks by Intel CEO Pat Gelsinger may help ease market concerns over Intel's role in the Terafab collaboration.
On October 7, according to Bloomberg, Pat Gelsinger stated in an interview in Tokyo that Intel will continue to participate in Terafab. Intel signed on as a development partner for the project in April this year, and his latest comments indicate that, despite recent changes in the collaboration, Intel has not withdrawn from the project.
The new uncertainty arises from TSMC. Earlier this week, Elon Musk revealed he is in talks with TSMC about potential collaboration on Terafab. Previously, Musk had excluded the possibility of TSMC operating Terafab; now with cooperation discussions resuming, it has raised market concerns over whether TSMC's possible involvement will impact Intel's role in the project. Following the news, Intel's share price once fell by 3.9%.
Terafab is Elon Musk’s initiative to enter the cutting-edge chip manufacturing sector and is also an important cooperation project for Intel to participate in the latest wave of semiconductor capacity expansion. Currently, as governments and enterprises accelerate AI deployment, demand for chips and related components continues to rise. The global semiconductor industry is ramping up capacity, with several sectors of the supply chain facing supply pressures.
Bloomberg previously reported that Musk has asked suppliers to push forward the Terafab plan at "light speed." Right now, factories for items such as ball bearings, chip manufacturing equipment, industrial chemicals, and rails are all running at full capacity, prompting companies to speed up the construction of new production lines.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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Latest update October 7 - Chipmaker Intel (INTC.O) shares rose 0.84% to $113.45 in premarket trading, attempting a rebound after four consecutive days of decline. Intel (INTC) CEO Pat Gelsinger told Bloomberg (link) the company will continue to advance Elon Musk's Terafab chip manufacturing (link) project. The report was released just days after Musk said TSMC 2330.TW and Terafab had discussed potential collaboration (link). Terafab is Elon Musk’s planned chip manufacturing plant (link), aiming to produce AI chips for Tesla TSLA.O and SpaceX SPCX.O. Last Saturday, Musk said that discussions were still at a preliminary stage and added that there may be results. However, on Wednesday he stated that TSMC (link) would not operate the Terafab AI chip production facility. Intel and Tesla did not immediately respond to Reuters' request for comment outside regular business hours. As of the close of the previous trading day, Intel (INTC) shares had more than tripled year to date. The stock dropped a total of 6.4% over the last four trading sessions. Meanwhile, shares of other major chipmakers declined, with Nvidia NVDA.O and AMD AMD.O dropping 0.6% and 1.8%, respectively. (For the convenience of non-English speakers, Reuters automates the translation of its reports into several other languages. As automated translations may contain errors or lack required context, Reuters does not guarantee the accuracy of automated translated texts. Automated translations are provided solely to assist readers. Reuters does not accept any liability for damage or loss resulting from the use of automated translation services.)
