Elon Musk Just Shared Bad News for Intel Shareholders
Intel's biggest rival is encroaching on one of the company's biggest growth catalysts.
Overview
Intel (NASDAQ: INTC) received a huge boost for the future of its foundry business after Elon Musk, CEO of both Space Exploration Technologies (NASDAQ: SPCX) and Tesla (NASDAQ: TSLA), shared plans for their Terafab joint venture. Intel officially joined the Terafab project the day after Musk announced his plans for end-to-end chip production in Texas. That's helped generate significant momentum in interest in Intel's foundry services over the last six months.
But Musk just confirmed that Intel's biggest rival could also play a role in the Terafab build-out. Taiwan Semiconductor Manufacturing (NYSE: TSM) could provide Terafab with a secondary source of manufacturing expertise and capacity, according to a report by Tim Culpan, which Musk confirmed. The news highlights some significant risks for Intel that investors need to consider.
Image source: The White House.
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Originally published at www.fool.com.