Intel signs on to Elon Musk’s Terafab chips project

In Brief Posted: 11:10 AM PDT · April 7, 2026 Image Credits:Intel (opens in a new window) Tim Fernholz Intel signs on to Elon Musk’s Terafab chips project Intel will join SpaceX and Tesla in an effort to build a new U.S. semiconductor factory in Texas, although the scope of its contributions are unclear. “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 future advances in AI and robotics,” Intel said in a corporate post on X. Intel hasn’t shared any more information. Elon Musk announced in March a team-up between the two tech companies he leads to develop chips for AI compute, satellites, and SpaceX’s mooted space data center and to support the possibility of autonomous Tesla vehicles and robots. However, building a chip fab is one of the most difficult and expensive corporate infrastructure projects out there, typically requiring years of time and more than $20 billion to create a facility with a huge clean room for thousands of ultra-precise machines to carve silicon. It wasn’t obvious how SpaceX and Tesla, two companies with no experience in the sector, could team up to execute the project efficiently. Now we have a better idea: Intel will do it. The company has been hunting for large anchor customers to support its foundry business, and now it has two. Still, if investors thought that Terafab would be a greenfield approach based on SpaceX’s and Tesla’s unique approach to engineering, that may not play out. Once the leading U.S. 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’s stock rose more than 3% on the news today. It was trading at $52.28, about 2.9% higher than its opening bell price, at 2 p.m. ET. Intel declined to comment on the partnership, while SpaceX didn’t respond to TechCrunch’s query. Techcrunch event This Week Only: Up to $482 savings for Disrupt 2026 Offer ends April 10, 11:59 p.m. PTYour next round. Your next hire. Your next breakout opportunity. Find it at TechCrunch Disrupt 2026, where 10,000+ founders, investors, and tech leaders gather for three days of 250+ tactical sessions, powerful introductions, and market-defining innovation. Register now to secure these savings.

This Week Only: Up to $482 savings for Disrupt 2026 Offer ends April 10, 11:59 p.m. PTYour next round. Your next hire. Your next breakout opportunity. Find it at TechCrunch Disrupt 2026, where 10,000+ founders, investors, and tech leaders gather for three days of 250+ tactical sessions, powerful introductions, and market-defining innovation. Register now to secure these savings. San Francisco, CA | October 13-15, 2026 REGISTER NOW Topics AI, Elon Musk, Hardware, In Brief, Intel, semiconductors April 30 San Francisco, CA StrictlyVC kicks off the year in SF. Get in the room for unfiltered fireside chats with industry leaders, insider VC insights, and high-value connections that actually move the needle. Tickets are limited. REGISTER NOW Newsletters See More Subscribe for the industry’s biggest tech news TechCrunch Daily News Every weekday and Sunday, you can get the best of TechCrunch’s coverage. TechCrunch Mobility TechCrunch Mobility is your destination for transportation news and insight.

Startups Weekly Startups are the core of TechCrunch, so get our best coverage delivered weekly. StrictlyVC Provides movers and shakers with the info they need to start their day. No newsletters selected. Subscribe By submitting your email, you agree to our Terms and Privacy Notice. Related AI Uber is the latest to be won over by Amazon’s AI chips Julie Bort 6 hours ago Space Can orbital data centers help justify a massive valuation for SpaceX? Anthony Ha 2 days ago Transportation The final days of the Tesla Model X and S are here. All bets are on the Cybercab. Kirsten Korosec 4 days ago Latest in Hardware In Brief Intel signs on to Elon Musk’s Terafab chips project Tim Fernholz 4 hours ago In Brief Apple’s foldable iPhone is on track to launch in September, report says Aisha Malik 5 hours ago TechCrunch Disrupt 2026 4 days left to save close to $500 on TechCrunch Disrupt 2026 passes TechCrunch Events 8 hours ago