As Intel's share price comes under pressure, the latest remarks from Intel CEO Lip-Bu Tan are expected to ease market concerns about the company's role in the Terafab collaboration.

On October 7, according to Bloomberg, Tan said in an interview in Tokyo that Intel (INTC) will continue to participate in Terafab. Intel signed on as a development partner for the project in April this year, and this latest statement means that despite new variables emerging in the project's cooperation recently, Intel has not withdrawn at present.

The variable comes from TSMC. Earlier this week, Musk revealed that he is discussing potential cooperation on Terafab with TSMC. Previously, Musk had ruled out the possibility of TSMC participating in Terafab's operations, and the resumption of cooperation discussions has raised market concerns about whether Intel's role in the project could be affected by TSMC's potential involvement. After the news emerged, Intel (INTC) shares fell as much as 3.9%.

Terafab is a plan by Musk to enter the advanced chip manufacturing sector, and for Intel (INTC), it is also an important cooperation project to participate in a new round of semiconductor capacity expansion. Currently, as governments and companies accelerate AI deployment, demand for chips and related components continues to grow, and the global semiconductor industry is accelerating capacity expansion, with multiple links in the supply chain facing supply pressure.

Bloomberg previously reported that Musk has asked suppliers to advance the Terafab plan at "the speed of light." At present, from ball bearings, chip manufacturing equipment, to industrial chemicals and guide rails, many types of factories are operating at full capacity, prompting companies to accelerate the construction of new production lines.