Aug 2 (Reuters) - Intel (INTC.O) , opens new tab was set to erase nearly $25 billion in stock market value on Friday in potentially its worst selloff since 2000 after it suspended dividend and slashed workforce to fund a costly turnaround for its chip-making business.

The company’s stock fell nearly 21% in premarket trading after Intel late on Thursday forecast quarterly revenue below estimates and announced 15% job cuts, raising worries about its ability to catch up with Taiwan’s TSMC (2330.TW), and other chipmakers. “Intel’s issues are now approaching the existential in our view,” Bernstein analyst Stacy Rasgon said.