Musk hints TSMC may join his mega chip venture, and Intel’s stock is taking a hit

Intel shares moved lower on Monday following a report suggesting Taiwan Semiconductor Manufacturing Company (TSMC) could participate in Elon Musk's Terafab chip factory project. The development matters because Intel has been positioning itself as a central player in domestic semiconductor manufacturing, and any indication that a major customer or partner might turn to a rival foundry can weigh on sentiment.

For investors, the story is less about a confirmed deal than about expectations. Musk's ventures carry significant chip demand, and where that demand is sourced — whether through Intel's foundry services or TSMC — could influence the competitive landscape. TSMC is the world's largest contract chipmaker, so its potential involvement in a high-profile project reinforces its scale advantage.

What to watch: official confirmation from the companies involved, any details on Terafab's timeline or capacity, and whether Intel responds with new foundry customer announcements. Until then, the market reaction reflects speculation as much as substance, and headlines around Musk's chip ambitions are likely to keep Intel and TSMC shares sensitive to further news.