Intel continues its partnership with Elon Musk on the Terafab chip manufacturing project located in Grimes County, Texas. The initiative, backed by Tesla, SpaceX, and xAI, aims to produce high-performance chips for robotics and artificial intelligence.
The project's initial investment is set to exceed $16.8 billion, with total expenditures potentially reaching $119 billion across multiple phases. Intel officially joined the effort on April 7, 2026, as the first named foundry partner.
During its Q1 2026 earnings call, Tesla announced plans to utilize Intel’s 14A manufacturing process for the project. Intel CEO Lip-Bu Tan previously characterized the collaboration as highly strategic.
Market uncertainty arose in early October 2026 after Musk disclosed preliminary and informal discussions with TSMC regarding the project. While Intel remains involved, the specific financial terms and the scope of its participation have not been publicly disclosed.
