Intel joins Elon Musk's 'Terafab' chip project

US technology giant Intel has announced that it will join Elon Musk's ambitious 'Terafab' chip project. The joint venture with SpaceX and Tesla aims to create cutting-edge and powerful processors for the robotics and data center sectors. Intel's share price rose more than 2 percent after the news was released.

Intel said that a photo of its CEO Lip Bu Tan and Elon Musk shaking hands was recently released. The company claims that Musk visited its campus last week. A few months ago, Musk hinted that Intel may work with it to build a large-scale AI chip factory, or 'fab', for Tesla's autonomous technology.

In a post on X, Intel said that its production capacity will accelerate the achievement of the 'Terafab' project's goal. The project aims to produce about 1 terawatt of computing power per year for AI and robotics.

Lip Bu Tan said that Elon Musk has consistently succeeded in restructuring the industry, and the semiconductor industry also needs a similar change. According to him, Terafab can bring about a major change in the production structure of silicon logic, memory and packaging technology.

Musk had previously announced that SpaceX and Tesla would jointly build two advanced chip factories in Austin, Texas. One factory would be used for Tesla's cars and humanoid robots, and the other for a space-based AI data center.

Meanwhile, SpaceX is reported to have secretly applied for approval for an initial public offering (IPO) in the United States. If successful, it could be one of the largest listings in market history.

According to analysts, this partnership is a significant breakthrough for Intel, which has been lagging behind in the AI ​​competition. The announcement comes especially amid the company's efforts to overcome long-standing losses in its 'Intel Foundry' business.

Intel is currently trying to rebuild its 18A manufacturing technology, with major investments from Nvidia and the US government supporting the company's recovery strategy.