US chipmaker Intel announced it will join Elon Musk's Terafab AI chip project in Austin, Texas, contributing to its design and construction. The facility will future-proof supply of AI chips for SpaceX (now integrated with xAI) and Tesla, supporting cutting-edge initiatives including autonomous vehicles, humanoid robots, and space data centers. Terafab aims to bridge the gap between current semiconductor capacity and surging future AI computing demands. Previously, Musk publicly expressed concerns over insufficient chip manufacturing capabilities while acknowledging that wafer fab development involves technical complexity and costs far exceeding his experience in automotive and rocket production. Intel's involvement will provide critical support across design, fabrication, and advanced packaging, alleviating pressure on the project's progress. According to Intel, the company will leverage its large-scale high-performance chip manufacturing expertise to help Terafab achieve an annual 1 terawatt-level compute power output goal, advancing AI and robotics technologies. Currently, Intel is ramping up domestic US production by investing approximately $20 billion to build two fabs in Arizona. Meanwhile, TSMC also plans to establish a major "superchip" factory locally, intensifying industry competition.