All 4048 headlines in chronological order — Page 137
SpaceX announced plans to build a US$55bn semiconductor manufacturing and advanced computing fabrication facility, known as the Terafab, in Grimes County, Texas, in partnership with Tesla.
Elon Musk's SpaceX is proposing to spend $55 billion to begin construction of a new semiconductor production facility in Texas, taking steps toward realizing an ambitious project he's dubbed Terafab.
NVIDIA has been searching for another foundry where it could produce additional GPUs, and it looks like they have found one partner in the form of Intel. With Intel's Foundry business securing recent TeraFab and Apple deals, it looks like these will act as a major confidence booster for external customers such as NVIDIA to use Intel's Fabs to secure extra production of their latest and greatest chips.
Tesla recently reported a sharp rebound in China-made Model 3 and Model Y sales in April, alongside securing its largest-ever Tesla Semi truck order and unveiling a multibillion‑dollar Terafab chip manufacturing initiative with SpaceX and xAI. Together, these developments highlight how Tesla is tying core EV demand, AI chip capacity and commercial trucking into a broader physical‑AI platform spanning vehicles, energy and robotics.
This bet is no small matter: it is Terafab, a cutting-edge chip manufacturing plant that promises to integrate the entire production chain into a single complex, with a focus on the next revolution in AI and robotics.
By producing his own semiconductors, Musk not only reduces long-term costs but also gains total control over chip architecture, optimizing them specifically for his own AI algorithms. Loading video... ... One of the project’s most notable highlights is the collaboration with Intel. The processor giant will join Terafab for the design, manufacturing, and assembly of ultra-high-performance chips.
Terafab is a planned semiconductor fabrication facility jointly developed by Tesla, SpaceX, and Intel, announced by Musk on March 21, 2026.
Nvidia invested $5 billion in Intel in September and is collaborating with the company on custom data center CPUs. Intel is also reportedly working with Elon Musk on a planned chip manufacturing facility in Texas tied to the Terafab project, which is intended to produce chips for Tesla, xAI, and SpaceX.
HSBC also noted that increasing momentum at Samsung and Terafab could provide additional upside for the company. Earlier in the week, on May 5, Seaport Research also initiated coverage of Applied Materials with a Buy rating and a $500 price target. The firm said Applied appears to be the best-positioned company among global wafer fabrication equipment suppliers. While the company does not hold ASML’s monopoly position in EUV lithography...
Elon Musk’s SpaceX estimated a chip factory it plans to build along with Tesla Inc. will cost at least $55 billion, with total investment potentially exceeding the amount the rocket maker aims to raise from a record initial public offering.
Tesla and SpaceX plan to build Terafab, a multibillion dollar semiconductor plant in Texas aimed at supplying chips for AI, autonomy, robotics, and space projects. The facility is intended to secure advanced chip capacity for both companies ...
Last month, the company formally ... chip design, production and advanced packaging for high-performance semiconductors. The agreement marks the first major customer win for Intel’s 14A process node.
Terafab vision: Tesla’s rumored Terafab initiative—a potential in-house or joint-venture packaging facility aimed at controlling advanced integration steps and expediting prototype cycles.
Reports around Terafab have also pointed to outreach involving Intel and major semiconductor equipment suppliers such as Applied Materials, Tokyo Electron, and Lam Research, companies that make the specialized tools modern fabs can’t function without. Those names add credibility to the idea that Musk is trying to plug into the existing semiconductor ecosystem rather than reinvent it. But they don’t erase the central challenge: building a fab is one thing; achieving high yields at scale is anothe
That matters because Intel and Musk’s companies have already been connected through two major areas: the TeraFab project and the use of Intel’s 14A process for future AI chips. The visit could also be tied to future AI chip supply. Companies building AI systems are under pressure to secure advanced manufacturing capacity, especially as TSMC remains heavily constrained. Musk’s xAI, Tesla, and related projects need large amounts of compute, and Intel wants to become a stronger alternative supplier
On June 3, the Commissioners Court of Grimes County, Texas, will convene in a public session that will consider the approval of a property tax abatement agreement for the Terafab. ... AI chip demand continues to grow at a rapid pace. Many AI chip suppliers are fabless semiconductor companies. In other words, AI chip suppliers use foundry vendors to manufacture their chips. The problem? There is a shortage of foundry capacity at leading-edge process nodes. There is also a shortfall of select adva
Congress authorized roughly $52.7 billion in incentives and research funding under the CHIPS and Science Act of 2022 to strengthen domestic chip production, a program that industry observers say still falls short of the scale some private projects ...
Intel has also reportedly secured major agreements with other technology leaders, including a $5 billion deal with NVIDIA to manufacture PC and data centre CPUs. The company is also said to be producing chips for Elon Musk’s Terafab project linked to Tesla, SpaceX and xAI.
Elon Musk said last month that he plans to rely on Intel’s future 14A chip node at his $119 billion Terafab planned for Austin, Texas, which is meant to make chips for Tesla, SpaceX and SpaceXAI. Intel CEO Lip-Bu Tan said in February that 14A will be in volume production in 2029. Intel already has major customers — such as Amazon and Cisco — for the advanced packaging side of its chipmaking business, in which individual chip dies and memory are bonded together to make things like a graphics proc
The Texas plant will be run by SpaceX and Tesla and make chips for both companies, which Musk has said will be used for AI, robotics, and space-based data centers. Last month, Intel announced that it would help design and build Terafab, saying, “Our ability to design, fabricate, and package ultra-high-performance chips at scale will help accelerate Terafab’s aim to produce 1 TW/year of compute to power future advances in AI and robotics.”