Tesla’s (TSLA) first-quarter 2026 earnings report, released after the close on April 22, delivered a beat on both revenue and earnings per share, but the most consequential revelation for the broader market may have been Elon Musk’s confirmation that Tesla and SpaceX will use Intel’s (INTC) next-generation 14A chip manufacturing process for the ambitious Terafab semiconductor complex in Austin, Texas. This announcement sent Intel shares up over 2% in Thursday morning trading.
Tesla’s (TSLA) first-quarter 2026 earnings report, released after the close on April 22, delivered a beat on both revenue and earnings per share, but the most consequential revelation for the broader market may have been Elon Musk’s confirmation that Tesla and SpaceX will use Intel’s (INTC) next-generation 14A chip manufacturing process for the ambitious Terafab semiconductor complex in Austin, Texas. This announcement sent Intel shares up over 2% in Thursday morning trading.
These machines use extreme ultraviolet light to print atomic-scale patterns onto silicon wafers. A single unit costs upwards of $200 million, and a modern, high-volume fab requires between 15 and 20 of them just to operate.
Tesla just picked Intel to make its advanced AI chips at the upcoming Terafab facility in Austin, Texas. Announced by Elon Musk, this move makes Tesla the first big customer for Intel's new 14A chip tech, a major step for both companies.
The name comes from its headline ... existing global fabs produce today combined. It will target 2nm process technology and an initial capacity of 100,000 wafer starts per month....
Design happens at fabless customers, memory is made at separate fabs (Micron, Samsung, SK Hynix), and advanced packaging and test are typically done at OSAT facilities or dedicated packaging sites. Terafab's claim is that design, lithography, fabrication, memory production, advanced packaging, and testing all happen at a single site.
First announced in March 2026 and located in Austin, Texas, the Terafab project is positioned as the world's largest 2nm-class advanced chip factory. It aims to produce 100 billion to 200 billion chips annually, with an ultimate goal of 1 terawatt ...
Terafab is Musk's (one might say) bold venture into making his own chips for xAI, Tesla, and SpaceX to power cars, robots, and data centres in space. It's apparently necessary, given the world seemingly doesn't produce enough chips for these ...
Intel Corporation (NASDAQ:INTC) shares moved higher in premarket trading on Thursday after Tesla Inc (NASDAQ:TSLA) CEO Elon Musk indicated that the Terafab venture plans to adopt Intel’s advanced 14A semiconductor manufacturing process. Speaking during Tesla’s post-earnings call, Musk said the 14A node is “not yet totally complete,” but should be “probably fairly mature or ready for prime time” by the time Terafab reaches scale.
One will focus on chips for vehicles and humanoid robots, and the other will produce processors for space-based data centres. Specifics regarding the responsibilities for funding, operation, and commissioning of the Terafab complex have not yet been detailed.
Terafab is an advanced AI chip manufacturing complex being developed by SpaceX, xAI, and Tesla in Austin, Texas, targeting GPUs and other AI processors.
Invested $2 billion in SpaceX common stock (formerly xAI) Announced capital expenditures exceeding $25 billion for 2026, driven primarily by AI initiatives · Continued building out Terafab, the joint Tesla/SpaceX semiconductor factory
Tesla has increased its capital expenditure plans to over $25 billion for 2026. A large portion of that investment will fund the Terafab project, a joint initiative with SpaceX aimed at producing AI chips.
Plans for Terafab, which Musk said would start in Austin and include other sites that are still being surveyed, are moving quickly. As he announced plans to local officials last month, earthmovers already were at work on a site near Gigafactory Texas that Musk said later would be a small plant focused on advanced chip design.
Investing.com-- Tesla Inc (NASDAQ:TSLA) CEO Elon Musk said on Wednesday that the Terafab joint venture plans to use Intel’s advanced 14A manufacturing process to make semiconductors.
Significantly, Terafab is a joint venture between Tesla, SpaceX, and xAI, highlighting a deep, strategic collaboration to secure a supply of cutting-edge, custom silicon for their collective AI-driven ambitions.
AI chip supply Electronic components distributor electronic components news Intel 14A process semiconductor pilot line Terafab project Tesla chip fab · SK hynix starts advanced packaging plant in Cheongju to boost HBM supply
Elon Musk's TeraFab project plans to adopt Intel's 14A process technology for AI chip production, with SpaceX handling high‑volume manufacturing. This $20B initiative aims to centralize chip fabrication, memory, and packaging all in one facility ...
Musk also announced that Tesla will use the next-generation manufacturing process Intel 14A to make chips in the project Terafab, an advanced AI chip manufacturing complex planned in Austin, Texas.