US tech giants Intel, SpaceX, and Tesla are joining forces to build a new semiconductor factory in Texas, marking a significant shift in their efforts to accelerate chip production. While the exact scope of Intel’s contributions is unclear, the partnership aims to help Terafab produce 1 TW/year of compute power for AI and robotics advancements.
In March, Elon Musk announced a team-up between SpaceX and Tesla to develop chips for various applications, including space data centers and autonomous vehicles. However, building a chip fab requires significant investment – typically around $20 billion – and years of time.
Intel has been seeking anchor customers to support its foundry business, and now it has two key partners in the space. Despite initial doubts about their ability to execute the project efficiently, Intel’s involvement provides stability and expertise. This partnership may impact investors’ expectations for Terafab’s greenfield approach.
Source: https://techcrunch.com/2026/04/07/intel-signs-on-to-elon-musks-terafab-chips-project