Intel Corp (NASDAQ:INTC) shares are trending Wednesday. CEO Lip-Bu Tan said the company will remain a part of Elon Musk’s Terafab project.

• Intel stock is showing upward bias. What should traders watch with INTC?

Intel Stock Trends After Lip-Bu Tan Confirms Terafab Role

Tan told Bloomberg that Intel will participate in Terafab ahead of a Tokyo event Wednesday that marks 50 years of Intel operations in Japan. Intel was previously named a development partner for Terafab in April. Terafab aims to allow SpaceX and Tesla to make AI chips in-house instead of relying on outside foundries.

Tan’s comments come after Musk made his own Terafab announcement earlier this week. Musk said he is holding talks with Taiwan Semiconductor Manufacturing Co (NYSE:TSM) about collaborating on the project.

That sets up the connection to Intel’s stock. Investors may be weighing whether the TSMC talks shrink Intel’s role in the project. Tan said Intel’s participation continues, which could calm that concern.

Global Chip Rush Gives Terafab its Backdrop

Terafab sits within a bigger industry push. Governments and companies worldwide are scrambling to expand output of semiconductors and other components needed to accelerate AI adoption. Factories making ball bearings, chip tools, industrial chemicals and slide rails are all operating at full capacity.

That strain is pushing companies to add manufacturing lines. The trend could keep attention on companies tied to chip production, including Intel through Terafab.

INTC Shares Are Rising

INTC Price Action: Intel shares were up 0.32% at $112.86 at the time of publication on Wednesday, according to Benzinga Pro.

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