Intel Corp. will continue to work with Elon Musk on Terafab, an audacious attempt by the trillionaire to break into the production of cutting-edge chips, according to Chief Executive Officer Lip-Bu Tan.
Earlier this week, Musk said he’s in discussions with Taiwan Semiconductor Manufacturing Co. regarding collaboration around Terafab. That’s hurt investor sentiment around Intel, which signed on as Terafab’s development partner in April.
Intel will continue its involvement in Terafab, Tan told Bloomberg prior to an event in Tokyo commemorating the US company’s 50th year of operations in Japan.
The Terafab project is part of a global stampede among governments and companies to boost production of semiconductors and other components needed to speed up AI adoption.
Factories of products as diverse as ball bearings, chip tools, industrial chemicals and slide rails are all at maximum capacity, spurring companies to build more manufacturing lines.
Read more: Musk Asks Suppliers to Move at ‘Light Speed’ on Terafab Plan