Tesla plans to join a $25 billion chip factory project called Terafab alongside Intel, SpaceX, and xAI. The partnership confirms what many had suspected: Tesla won’t be building its own chip fab, but rather relying on Intel to manufacture its chips. The real takeaway is that Intel will use its expertise in design, fabrication, and packaging to produce ultra-high-performance chips for Tesla and other clients. This deal solidifies Intel’s position as a major player in the chip industry and provides Tesla with access to advanced technology without the need for significant investment in manufacturing capabilities.
Source: https://electrek.co/2026/04/07/tesla-terafab-intel-joins-foundry