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Intel Joins Elon Musk’s $25 Billion USD “TeraFab” Megaproject: The Austin semiconductor hub will power custom chips for self-driving cars, humanoid robots, satellites and orbital AI data centers.
Under that agreement, Tesla plans ... of its chip design, fabrication and packaging expertise. Tesla will take the lead on the research facility where the companies can experiment with new technologies and processes, while SpaceX will take charge of the early phases of the Terafab project, he ...
Elon Musk’s SpaceX plans a $55 billion Texas semiconductor facility, Terafab, with Tesla, aiming to meet soaring AI and robotics chip demand, pending local tax approvals, according to a public notice.
These chips will be used to power Tesla’s humanoid robots called Optimus, self-driving hardware, and AI data centers. “We either build the Terafab or we don’t have the chips, and we need the chips, so we build the Terafab,” he said. The facility also plans to utilize Intel’s 14A process node, highlighting a close collaboration with Intel for manufacturing purposes. To safeguard their companies, including SpaceX...
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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.
In an announcement on X, Intel expressed pride in joining the effort to "refactor silicon fab technology." The company noted that its ability to fabricate and package ultra-high-performance chips at scale will be key to reaching TERAFAB’s goal of producing 1 terawatt (TW) of compute per year.
Meanwhile, the Terafab initiative has also drawn in its chip manufacturing partner Samsung Electronics, though Samsung is said to have suggested that additional capacity from its under-construction Taylor, Texas fab could be allocated to Tesla instead, Bloomberg notes.
And Intel still hasn’t had much success in attracting other companies to use its manufacturing technology, though Elon Musk says he will use the company’s forthcoming 14A process for his “Terafab” — a huge manufacturing complex the billionaire hopes to build in Texas.
Tesla is transitioning from an automaker to a "physical AI" powerhouse, with investors betting on its Terafab facility and upcoming Cybercab production to drive future growth.
¿Terafab ya fabrica chips? No. Por ahora es un proyecto en planificación. Musk ha hablado de una primera fab de investigación en Giga Texas y de una visión a mayor escala, pero no hay producción comercial confirmada.
Sans aucun doute, la Terafab vise à devenir le nouveau centre de gravité du silicium texan. Elon Musk construit son giga-usine pour internaliser la production de puces et s’affranchir de ...
He first publicly detailed the lunar mass driver concept — describing it as a "cannon-like device using magnetic power" — during an xAI all-hands meeting in February 2026. By March 21, SpaceX had formally integrated electromagnetic mass drivers into its lunar roadmap under what has been referred to as "Project TERAFAB."
He sees orbit as prime for massive compute, unburdened by Earth’s limits. 100 terawatts dwarfs ground plans; his proposed SpaceX-Tesla Terafab chip plant targets one terawatt yearly, per Investor’s Business Daily.
One of the most significant benefits of integrating Intel's TeraFab technology into SpaceX's Starlink satellites is the drastic improvement in data processing capabilities essential for Starship missions. These custom chips offer robust radiation‑hardening, critical for operational reliability in the harsh conditions of space environments such as those encountered during Mars missions.
According to the plan, 80% of the chips produced by Terafab will be deployed in space for SpaceX’s interstellar AI satellite data centers and radiation-hardened chip needs, while 20% will be allocated for terrestrial applications, including Tesla FSD, Cybercab robotaxis, and Optimus humanoid robots.
“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,” the company said.
"We are excited to explore innovative ways to refactor silicon process technology, looking for unconventional ways to improve manufacturing efficiency that will eventually lead to a dynamic improvement in the economics of semiconductor manufacturing." TeraFab is the first major customer Intel has scored for 14A, regardless of the specific arrangement.
Critically, though, the cost of reusable rockets must fall appreciably for the idea to make economic sense. SpaceX's Starship has brought down the cost of placing payloads in orbit into the realm of possibility, not feasibility. There is enough evidence, including Musk's record, to suggest Terafab may not deliver to timelines drawn for investors.
In a move that shifts Tesla’s focus from the assembly line to the silicon wafer, CEO Elon Musk has detailed the "Terafab"—a massive semiconductor complex in Austin, Texas, designed to produce a staggering 1 terawatt of compute per year.