Intel signs on to Elon Musk’s Terafab chips project

Intel has joined Elon Musk’s Terafab chips project, partnering with SpaceX and Tesla to build a U.S. semiconductor factory in Texas.

Intel said its ability to design, fabricate, and package ultra-high-performance chips at scale will help Terafab pursue 1 TW/year of compute for AI and robotics.

The scope of Intel’s specific contributions to the project remains unclear.

Building a chip fab typically takes years and costs more than $20 billion.

Intel’s stock rose over 3% on the news, trading at $52.28 (about 2.9% above the opening bell) at 2 pm ET.