Intel Pairs Up With Elon Musk on the Grand “TeraFab” Project, Which Plans to Produce Chips at a Volume Significantly Larger Than Any Other Foundry

Intel says it will join Tesla’s TeraFab project, alongside SpaceX and xAI, to help build a U.S.-based chip manufacturing network.

The partnership is expected to bring Intel Foundry technologies such as 18A, and possibly EMIB, into Tesla’s planned Austin production setup.

The goal is to scale domestic semiconductor output and support Tesla’s ambition to reach 1 TW of compute capacity per year.

If completed, the collaboration could reduce reliance on overseas foundries and give Tesla access to advanced AI chip manufacturing.