Intel to support Terafab chip production project for AI and robotics
Intel says it has joined the Terafab project alongside SpaceX, xAI, and Tesla. Intel said it will help “refactor silicon fab technology” and use its chip design, manufacturing, and packaging capabilities to support the effort.
According to Intel’s post, the goal is to help Terafab reach 1 TW per year of compute for future AI and robotics workloads. Intel also said it hosted Elon Musk over the weekend, which suggests the project is now moving beyond teasers.
Last month, Musk had hinted at possible work with Intel but no official agreement had been signed. At the time, Musk said Tesla’s Terafab project was needed because existing foundries could not expand fast enough to meet future demand for Tesla’s AI hardware.
Intel is proud to join the Terafab project with @SpaceX , @xAI , and @Tesla to help refactor silicon fab technology.
Our ability to design, fabricate, and package ultra-high-performance chips at scale will help accelerate Terafab’s aim to produce 1 TW/year of compute to power… pic.twitter.com/2vUmXn0YhH
— Intel (@intel) April 7, 2026
According to earlier reports, Tesla and SpaceX planned Terafab semiconductor factories in Austin, Texas. Musk said the sites would make chips for Tesla vehicles and Optimus robots, as well as hardware for SpaceX satellites and space data center use, but he did not provide a buildout timeline.
Intel did not share any details on process technology, packaging, or the foundry model for Terafab. Still, the post confirms that Intel Foundry is involved, which puts the company in a visible position on one of the more ambitious AI chip manufacturing projects announced this year.
Source: Intel
