Intel (NASDAQ:INTC) shares climbed about 2% on Tuesday morning after the company confirmed it has joined the Terafab chip manufacturing initiative alongside SpaceX, xAI and Tesla.
The stock moved higher following reports that Intel hosted Elon Musk over the weekend and subsequently announced its participation in the project.
In a post on X, Intel said it will contribute its expertise in designing, manufacturing and packaging high-performance semiconductors at scale to support Terafab’s objective of producing 1 terawatt of computing power annually for artificial intelligence and robotics workloads.
The Terafab effort brings together Intel and several companies led by Musk—SpaceX, xAI and Tesla—with the aim of rethinking and advancing silicon fabrication technology. Intel’s role will focus on applying its semiconductor manufacturing capabilities to help accelerate the project’s production ambitions.
The partnership links one of the world’s largest established chipmakers with companies active in electric vehicles, space technology and artificial intelligence, reflecting growing collaboration across sectors to support the expanding demand for advanced computing infrastructure.