Intel has reportedly landed Tesla as its primary client for its upcoming 14A chip manufacturing process, as per a recent Reuters report. Elon Musk, the CEO of Tesla, announced that the company intends to utilize Intel’s 14A process to manufacture chips for its Terafab project, an advanced AI chip complex located in Austin, Texas. Following this news, Intel’s stock saw a 3.6 percent increase in after-hours trading.
This collaboration is part of Musk’s broader vision to construct extensive computing infrastructure. Intel, along with Tesla and SpaceX, is participating in the proposed Terafab complex, which aims to produce processors for robotics systems and data centers.
The Terafab initiative is still in its early phases. Musk has laid out plans for two advanced chip fabrication facilities at the site—one designed for powering vehicles and humanoid robots, and the other focused on space-based data centers. Crucial details such as funding, operational authority, and timelines are yet to be finalized.
Musk envisions the facility eventually generating an annual computing capacity of one terawatt, surpassing the current half-terawatt capacity across the United States. Estimates from Bernstein suggest that achieving this level of capacity could necessitate between $5 trillion and $13 trillion in capital investments, according to the Reuters report.
