Tesla, SpaceX and xAI are planning two chip fabrication plants at Tesla's Terafab site in Austin, Texas — one to supply chips for Tesla vehicles and Optimus robots, the other for future AI data centers in space.
On the execution side, Intel Corporation is lining up marquee partners. New chip-design and manufacturing work with Apple, plus ties to Nvidia and Elon Musk–linked Terafab, shows that big customers are at least kicking the tires on Intel’s foundry.
On top of this, Lee sees foundry services (i.e., manufacturing semiconductors for other companies) contributing meaningfully to Intel's revenue haul in the future. He calls the opportunities at Terafab and Apple (NASDAQ: AAPL) -- and potentially Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) and Nvidia ...
On top of this, Lee sees foundry services (i.e., manufacturing semiconductors for other companies) contributing meaningfully to Intel's revenue haul in the future. He calls the opportunities at Terafab and Apple (AAPL +0.85%) -- and potentially Alphabet (GOOG 0.69%) (GOOGL 0.90%) and Nvidia ...
A week later it priced a $25B inaugural bond across five tranches (5.35% to 6.65%, 2031 to 2056) to repay the bridge loan, with $100.8B of cash on hand as of June 19. Sequoia’s Roelof Botha joined the board. The company also disclosed the Terafab chip-fab project with Tesla and Intel [INTC 0.00%↑], cloud compute agreements with Anthropic and Google, and Starship V3’s first test flight.
On the foundry business, HSBC said the narrative is "too good to ignore now," with Intel emerging as a leading alternative to TSMC amid front-end fabrication and advanced packaging constraints. Lee noted that Intel has signed Terafab and Apple as foundry customers and is engaging with Google ...
Ives views the launch business as the engine that makes pretty much everything at the company possible, and is most excited about the AI division, which comprises the social media platform X, the digital AI intelligence platform Grok, multiple data centers, and a future potential terafab facility.
In March, Tesla announced that the company would build a semiconductor fabrication facility — a collaboration between Tesla and Musk’s privately-held company SpaceX — called Terafab, which will integrate chip design, fabrication, mask production, packaging and testing into a single complex ...
SpaceX became an AI company the moment it absorbed xAI, folding Grok and a frontier lab into a business that already owned the satellites and the power. The two firms already behave like one organism. They share engineers. They collaborate on the Terafab chip plant in Austin.
The supply chain remains a major question. Musk has also announced Terafab, a proposed Texas chip project meant to produce 1 terawatt of compute power per year, much of it for space use.
While some analysts, like Dan Ives from Wedbush, estimate an 80–90% probability of a merger by early 2027, market odds remain significantly lower. The companies, however, already collaborate on various projects, such as the Terafab semiconductor ...
Elon is putting minuscule $80 billion dollars into Terafab. That's not going to change anything. Right now Tesla is recruiting Korean semiconductor engineers in Seoul. It won't be easy. SAMSUNG is paying all the semiconductor engineers $400,000K bonus this year and $700,000 bonus next year.
Foundry Services Potential: Lee sees significant revenue contributions from Intel's foundry services, particularly through partnerships with Terafab and Apple, predicting that Intel will begin to capture market share from Taiwan Semiconductor this year, enhancing its competitive position.
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Reuters has also reported that SpaceX, xAI -- which it acquired -- and Tesla plan to build two advanced chip factories at the Terafab facility in Austin, Texas, including one for Tesla vehicles and Optimus robots and another for future AI data ...
Elon just launched Terafab — Tesla, SpaceX, and xAI combined into one chip factory. Goal: one terawatt of AI compute per year. Every fab on Earth produces 20 gigawatts. He wants 50x that.
The Tesla, SpaceX, and X owner says his new ‘Terafab’ facility could rival global leaders like TSMC, but with a potential $300 billion price tag, skeptics are already circling.
Elon Musk’s Tesla and SpaceX have pursued Terafab concepts aimed at terawatt-scale computing infrastructure. Estimates for one such effort run toward $20 billion or more. The contrast stands stark. Megafabs versus networks of small ones. Centralized production versus distributed, replicable facilities. Both approaches seek to expand American chipmaking capacity.
Its business story now stretches across launch systems, Starlink, AI infrastructure, chips, data centres, and possible consumer platforms. Our recent look at SpaceX’s $55 billion Terafab AI chip factory plan showed how aggressively the company wants to control more of the AI stack.
See where Tesla and SpaceX rank among the largest Central Texas employers in this report. Wednesday, September 09, 2026 · Bastrop County Growth Summit 2026 · Join the Austin Business Journal at the 2026 Bastrop County Growth Summit! Event: Bastrop County Growth Summit 2026 · SpaceX could soon top 2,000 employees here · Elon Musk's Terafab project seeks school tax breaks ·