Intel will continue its involvement in Elon Musk’s Terafab chipmaking project despite Musk revealing in October that he held talks with TSMC. Terafab is Musk’s venture to manufacture ultra-high-performance chips for AI and robotics, backed by three of his companies: Tesla, SpaceX and xAI. The planned Texas facility in Grimes County targets a compute capacity of 1 terawatt annually, with an initial planned investment exceeding $16.8 billion and total spending potentially reaching up to $119 billion. Intel joined the project on April 7, 2026, as the first publicly named foundry partner, and plans to use its 14A manufacturing process for the project.
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