Intel will join SpaceX and Tesla in an effort to build a new US semiconductor factory in Texas, although the scope of its contributions is unclear.
“Our ability to design, manufacture and package ultra-high-performance chips at scale will help accelerate Terafab’s goal of producing 1 TW/year of computing to power future advances in artificial intelligence and robotics,” Intel he said in a company post on X. Intel has not shared more information.
Elon Musk announced in March a teaming between the two tech companies that is leading the development of chips for artificial intelligence computers, satellites and SpaceX’s space data center, and to support Tesla’s autonomous vehicle and robot capability.
However, building a chip fab is one of the most difficult and expensive enterprise infrastructure projects out there, typically requiring years of time and more than $20 billion to create a facility with massive clean space for thousands of ultra-precise machines to etch silicon. It was not obvious how SpaceX and Tesla, two companies with no experience in the field, could work together to execute the project effectively.
Now we have a better idea: Intel will. The company has been looking for major anchor customers to support its foundry business and now has two. However, if investors thought Terafab would be a greenfield approach based on SpaceX and Tesla’s unique approach to engineering, that might not work.
Once the top US silicon producer, Intel has seen rivals Nvidia and AMD take the lead in developing advanced processors and adopt the “fabless” business model where chip designers outsource the manufacturing of their semiconductors. Intel stock rose more than 3% on the news today. It was trading at $52.28, about 2.9% higher than its opening campaign price, as of 2 p.m. ET.
Intel declined to comment on the partnership, while SpaceX did not respond to TechCrunch’s query.
Techcrunch event
San Francisco, California
|
13-15 October 2026
