Intel joins Musk's Terafab chip factory project

Intel is partnering with SpaceX and Tesla on Elon Musk's Terafab initiative, aimed at building a semiconductor factory in Texas to produce 1 terawatt per year of compute power for AI and robotics. Intel's foundry expertise addresses a key challenge, as SpaceX and Tesla lack chip manufacturing experience. The move gives Intel two major anchor customers for its struggling foundry business, though it signals Terafab may follow conventional chip production rather than a novel engineering approach. Intel's stock rose over 3% on the news, while neither Intel nor SpaceX elaborated on the partnership's specifics.