Overview
- Musk, speaking Wednesday on Tesla’s earnings call, said the Austin-based Terafab will build chips on Intel’s upcoming 14A manufacturing node, a process for making smaller, faster chips.
- Intel has not confirmed Tesla as a 14A customer and declined to comment on the remarks.
- Musk outlined a split structure for the project, with Tesla running a $3 billion research pilot at Gigafactory Texas and SpaceX handling high-volume production.
- Investors reacted to the potential foundry win, lifting Intel shares by roughly 3% in after-hours trading.
- The move could validate Intel’s foundry comeback after losing ground to TSMC, a high-stakes effort given CEO Lip-Bu Tan’s warning that Intel could quit manufacturing if it fails to win outside customers.