Intel Joins Musk’s TerraFab AI Chip Project

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Apr. 08, 2026 –

Partnership aims to build a vertically integrated U.S. AI chip base

By Kim Eun-jin, BusinessKorea

As U.S. semiconductor company Intel decides to join Tesla CEO Elon Musk’s artificial intelligence (AI) chip production project, “TerraFab,” attention is focusing on whether the competitive landscape of the global foundry (contract chip manufacturing) market will change. With AI chip volumes from global big tech companies pouring in, and Intel emerging as Tesla’s key partner as well, competition for orders in the 2-nanometer-class segment is expected to intensify.

According to the industry on April 8, Intel announced on April 7 (local time) that it will participate in the TerraFab project together with SpaceX, xAI, and Tesla. TerraFab is a mega-scale semiconductor production base pursued by Musk. It is expected to serve as an “integrated semiconductor manufacturing base” that performs AI semiconductor design, manufacturing, testing, and improvement all in one.

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