Key facts
- Intel will continue to work with Elon Musk on his Terafab chipmaking project.
- Intel CEO Lip-Bu Tan confirmed the ongoing involvement.
- Terafab aims to manufacture ultra-high-performance chips for artificial intelligence and robotics.
- The project is backed by Tesla, SpaceX, and xAI.
- Musk has also held preliminary discussions with TSMC about potential cooperation.
- Intel joined the Terafab effort on April 7, 2026.
Intel Corp will continue its collaboration with Elon Musk's Terafab project, a venture aimed at manufacturing advanced chips for artificial intelligence and robotics, according to Bloomberg News. Intel CEO Lip-Bu Tan confirmed the ongoing involvement, emphasizing its strategic importance.
Musk's Terafab project, backed by Tesla, SpaceX, and xAI, plans to build a facility in Grimes County, Texas, with an initial investment exceeding $16.8 billion and a potential total spend of up to $119 billion. The facility targets an annual compute capacity of 1 terawatt.
Intel joined the project on April 7, 2026, as the first named foundry partner. Tesla has indicated plans to utilize Intel's 14A manufacturing process for Terafab.
The confirmation comes after Musk revealed on social media platform X that he had held discussions with Taiwan Semiconductor Manufacturing Company (TSMC) about potential cooperation. These talks have been described as preliminary and informal, raising questions about Intel's role and potential competition.
No specific financial commitments from Intel have been publicly disclosed, nor has the exact scope of its participation been detailed. The company's stock price experienced fluctuations following the news of TSMC's potential involvement.