Elon Musk Just Shared Bad News for Intel Shareholders

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Intel’s Foundry Edge Under Threat as TSMC Eyes Terafab Deal

TSMC entering talks with Terafab weakens Intel’s exclusive foundry ambitions, casting doubt on its growth story.

Intel has been riding high on a hype wave around its foundry business, especially after announcing accelerated rollout of the 14A process tech. But Elon Musk’s confirmation that TSMC is in the mix with Terafab chips challenges Intel’s position as SpaceX and Tesla’s exclusive manufacturing partner. This isn’t just a crack in the narrative, it raises real questions about Intel’s ability to deliver growth from foundry services, a key rationale behind its rich valuation on the Nasdaq. Locally, this matters because if US chip supply diversifies, rand volatility could rise on shifts in USD/ZAR flows tied to the tech sector’s global capital movements. South African investors should watch the currency closely, as jittery tech sector investors often push USD/ZAR wider in times of semiconductor uncertainty. Buy Intel only if you believe in a quick, decisive win in their foundry race; otherwise, wait. This stance may be wrong if Intel secures a broader deal or breakthrough in 14A production that locks in Terafab exclusivity. this is just our opinion and not financial advice