Intel Corp (NASDAQ: INTC) shares are trending Wednesday after Chief Executive Officer Lip-Bu Tan confirmed the company will remain a participant in Elon Musk’s Terafab project. Tan made the comments to Bloomberg ahead of a Tokyo event marking 50 years of Intel’s operations in Japan. Intel was previously named a development partner for Terafab in April.
Terafab is an initiative aimed at allowing SpaceX and Tesla to manufacture AI chips in-house rather than relying on external foundries. The project sits within a broader global push to expand semiconductor production to accelerate AI adoption. Reports indicate that factories producing ball bearings, chip tools, and industrial chemicals are operating at full capacity.
Intel’s participation in the project had been called into question after Elon Musk announced earlier this week that he is holding talks with Taiwan Semiconductor Manufacturing Co (NYSE: TSM) about collaborating on Terafab. Investors were reportedly weighing whether these discussions with TSMC might reduce Intel’s role in the initiative. Tan’s statement that Intel’s participation continues is intended to address this concern.
At the time of publication, Intel shares were up 0.32% to $112.86, according to data from Benzinga Pro.
