Right now, the team-up looks to be a significant win for Intel and a smart move by Musk to accelerate the Terafab's development and production timeline and increase the project's chances of being a big success. Intel stock closed out the day up more than 4%, but Tesla ended the session down roughly 1.8%.

Intel has joined Tesla, SpaceX and xAI's $25B 'Terafab' project, confirming what was already obvious: Tesla isn't actually going to build its own chip fab.

Intel (NASDAQ:INTC) stock advanced 3% in Tuesday’s session, moving above $52 after news broke that SpaceX, Tesla (NASDAQ:TSLA | TSLA Price Prediction), and xAI are partnering with Intel on the ambitious TeraFab semiconductor initiative.

“I welcome Intel’s decision to begin operations for the complex later this year,” a translated version of Ibrahim’s post read. An Intel spokesperson, John Hipsher, confirmed that it’s building out additional chip assembly and test capacity in Penang, “amid rising global demand for Intel Foundry packaging solutions.”

Intel is reviewing its Ireland semiconductor investment structure as it expands manufacturing capacity and targets growth in AI-related chips.

Intel Corporation (NASDAQ:INTC) is one of the 10 Stocks Jim Cramer Talked About & Warned About A Weak Market. Chip manufacturing giant Intel Corporation (NASDAQ:INTC)’s shares are up by 27% and 124% over the past year.

April 1 (Reuters) - Intel said it would spend $14.2 billion to buy back the 49% stake it had sold to Apollo Global Management in its Ireland manufacturing facility, taking full ownership of the plant as its finances improve and AI drives demand for its processors.