Technology and Science07 April, 20261 min read
Intel Joins Musk's Terafab, Will Build Chips for SpaceX and Tesla
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Intel joins SpaceX, Tesla, and xAI in the Terafab project. Austin, Texas will host a new Terafab semiconductor factory.
Intel Joins Terafab
Intel officially joined Terafab, announcing it will design, fabricate, and package ultra-high-performance chips. Musk had floated the idea of partnering with Intel five months earlier.
The announcement does not detail the legal framework of the partnership. Intel will leverage its foundry and packaging expertise to accelerate Terafab's goal to produce 1 terawatt per year of compute.
Terafab Roadmap
Terafab includes two chip factories planned for Austin, Texas. The project aims to produce up to 1 terawatt per year of compute capacity.
Intel's packaging technologies are expected to play a critical role. Intel's involvement addresses concerns over Musk's lack of semiconductor experience.
Market Reactions
Intel's stock rose 2.9% on the news, trading at $52.28. Tesla shares were trading 2.6% lower at $343.50. The Atlantic Council characterized the campaign as a high-risk gamble.