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Intel has announced that it will help Elon Musk design and build his proposed Terafab in Austin, Texas, a joint venture between Musk's companies like SpaceX, Tesla and xAI to manufacture the chips necessary to power various AI projects.
AUSTIN, Texas — Semiconductor manufacturing company Intel announced on Tuesday that it will help with Elon Musk’s $20 billion chip-manufacturing facility project. The company posted the news on X, a social media platform owned by Musk, saying that it would join the Terafab project—a joint venture between Musk’s companies Tesla, SpaceX and xAI.
TSLA's $25B+ CapEx for Terafab, Cortex, and Optimus will likely drive negative FCF and margin compression in H2-FY2026, exacerbated by one-off Q1 margin inflators.
For all the Musk haters. https://www.msn.com/en-us/money/other/elon-s-terafab-is-moving-at-light-speed-and-that-could-mean-big-things-for-tesla/ar-AA22irvx
Tesla TERAFAB and TERALAB will have vertical integration and scaling. They have all the semiconductor leaders helping the achieve next level AI chips. They have Intel, Samsung and TSMC as partners.
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Para referência, a TSMC leva décadas e centenas de bilhões de dólares para construir capacidade equivalente, e suas primeiras fábricas de 2nm nos EUA não devem atingir produção plena antes de 2029. O custo estimado do projeto gira entre US$ 20 bilhões e US$ 25 bilhões. Musk já indicou que, quando a Terafab estiver em escala, pretende utilizar o processo de próxima geração da Intel, o 14A, descrevendo a tecnologia como “provavelmente bastante madura ou pronta para uso em produção em larga escala”
Intel has officially partnered with Elon Musk to design and build the Terafab facility in Austin, Texas. This project, valued at $25 billion, aims to centralize chip manufacturing for SpaceX, xAI, and Tesla.
The challenge Intel faces in competing directly against TSMC has never been just about technical claims. It is fundamentally about customer trust. But if Intel can enter through a highly customized, vertically integrated, politically strategic project like Terafab, then it does not need to ...
DigiTimes report reveals that foundries like Intel, Rapidus, and even Musk's upcoming TeraFab are looking to Taiwanese suppliers associated with TSMC, as they see them as a 'winning bet' given their close ties to the Taiwan chip ...
It was revived in January 2026 as an orbital compute concept tied to SpaceX — the same infrastructure Terafab is now designed to serve. Nvidia CEO Jensen Huang publicly cautioned Musk against underestimating the challenge, saying that matching ...
Pilot-scale fab at Giga Texas to test chip technologies as Terafab initiative advances with SpaceX and Intel involvement
Construction is seen north of the ... Intel Corp. is joining Elon Musk’s Terafab, a massive chip plant getting started with an advanced technology facility at Gigafactory Texas....
Elon explained: “We're still working out the details of the Terafab deployment. "In the near term, Tesla will be building the research fab on our Giga Texas campus.
6) Tesla, SpaceX, and xAI committed to using Intel’s 14A process for the Terafab project, confirmed by Elon Musk on Tesla’s Q1 call, where he called it “state of the art.” This is the first major external 14A customer announcement and arrives ahead of management’s prior timeline, which had pointed to firm customer decisions beginning in H2 2026 and extending into H1 2027.
Intel announced earlier this month that it will be joining Musk's Terafab chip complex in Austin, Texas, to help "design, fabricate, and package ultra-high-performance chips at scale" for SpaceX, xAI and Tesla.
SpaceX will manage the initial phase of the larger-scale Terafab build. The motivation: Musk sees no path to sufficient AI chip supply at the volumes Tesla needs without making its own silicon.
Intel is aggressively looking for external customers for its foundry business and recently announced a deal with Tesla for Terafab. Lip-Bu Tan, Chief Executive Officer of Intel, appears at an event organized by the company.
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