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Additionally, Tesla has committed alongside xAI, SpaceX, and Intel to partner with Terafab, a semiconductor fabrication plant that will produce chips for Tesla's vehicles and robots.
On April 7, Intel announced it would serve as primary foundry partner for Terafab, Elon Musk’s $25 billion semiconductor joint venture with Tesla, SpaceX, and xAI. The facility in Austin is targeting Intel’s forthcoming 14A process for production-scale AI compute.
Intel (INTC) has broken out strongly in April 2026 after the US government took a major equity stake via the CHIPS Act, the $14.2B Ireland Fab 34 buyback, and a high-profile Terafab partnership with Elon Musk’s ecosystem.
Taiwan Semiconductor Manufacturing indicated plans to spend closer to the high end of its $52 billion to $56 billion 2026 capital expenditure guidance this year. That would represent a 37% year-over-year increase. Additionally, Intel could increase purchase orders, especially with plans to partner with Tesla and SpaceX for its Terafab project, which set aside $20 billion for its initial facility.
The Terafab aims to produce one terawatt of computing capacity annually, compared to approximately half a terawatt currently generated across the entire United States. Musk stated current global chip production would meet only a small fraction of his companies' future needs, though he acknowledged existing suppliers like Samsung...
Intel joins Elon Musk's Terafab venture, announcing a key gallium nitride chiplet manufacturing breakthrough for high-voltage, cost-effective semiconductor production.
Intel just secured billions in CHIPS Act funding to rebuild American semiconductor manufacturing, but those new Arizona and Ohio fabs won't reach full production for years. Unless Terafab is content with Intel's older process nodes - which would put them at a significant performance disadvantage ...
Musk unveiled the TeraFab proposal recently at the former Seaholm Power Plant in Austin, Texas.
Intel is proud to join the Terafab project with @SpaceX, @xAI, and @Tesla to help refactor silicon fab technology. 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…
Intel CEO says he can 'think of no better partner than Elon Musk' to explore 'unconventional' ways to improve chip manufacturing — TeraFab partnership aims to rethink how chips are made to reduce costs ... From Earlier But Significant | Tesla, LG Energy Solution, and KULR Signal New Momentum in Battery Innovation ... Intel Wins U.S. SHIELD Contract to Supply Chips & Advanced Packaging Under $151 Billion Defense Program, Leveraging Its Domestic Fab Capabilities
Semiconductors Analyzing Elon Musk's TeraFab — A step towards Tesla and SpaceX's partial vertical integration, or an unattainable dream? Semiconductors Intel's EMIB-T packaging technology set for fab rollout this year
Tesla CEO Elon Musk plans to use Intel’s 14A process in his $25 billion Terafab Project.
Terafab is expected to eventually target one terawatt of computing capacity annually, a scale that would exceed current US output. However, estimates suggest that achieving this level of capacity could require capital investment ranging from $5 trillion to $13 trillion. Musk’s teams have reportedly initiated discussions with equipment suppliers such as Applied Materials, Tokyo Electron, and Lam Research to source critical chipmaking tools.
Tesla becomes Intel's first major 14A customer, feeding chips into Musk's Austin Terafab — a lifeline for Intel's foundry ambitions.
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Why it matters: Terafab joining Prometheus (Meta), Project Rainier (Anthropic/Amazon), and the Cerebras deal (OpenAI) means every major AI player is now building or committing to sovereign compute infrastructure that doesn't depend on renting ...
Intel surged after Tesla tapped its 14A chips for the TeraFab AI project, boosting its foundry turnaround prospects.
■Correspondent Yoon Kyung-hwan's Trump Stocker <201> Intel Posts Surprise Q1 Results on Rising AI CPU Demand World's First DRAM Maker Built 50-Year Empire Before AI Collapse Trump Administration Takes Largest Stake; SoftBank Also Invests Musk's 'Terafab' Joins In; Ireland Fab Repurchased Shares Surge 124% This Year, Targeting Foundry Rebuild ... Published 2026.04.25. 12:05:05| ... Former Intel CEO Pat Gelsinger. An engineer by training, Gelsinger took the helm in F
Roughly 3.5 EUV machines are needed to sustain one gigawatt of advanced-chip output; scaling to terawatts implies a need for thousands of these machines cumulatively. For inference-heavy workloads (robots, self-driving, satellites), mature 7 nm and larger DUV processes can be ramped far faster and with multiple suppliers, offering a practical near-term bridge. Maskless alternatives such as multi-beam helium particle lithography promise finer features, dramatically faster design iteration, and lo
Moreover, there’s the future investment to consider that Tesla will make into Terafab, a vertically integrated semiconductor plant to be built in partnership with SpaceX and xAI.