Intel confirmed Tuesday it is joining Elon Musk’s Terafab semiconductor project, linking up with SpaceX, xAI, and Tesla in what could be one of the most ambitious chip manufacturing efforts in recent memory.
Intel $INTC joined the Terafab project with SpaceX, xAI, and Tesla to help advance silicon fabrication for AI and robotics.
Targeting 1 terawatt per year of compute capacity, with the company contributing chip design, fab, and packaging capabilities. pic.twitter.com/KQzF3VCPLa
— Wall St Engine (@wallstengine) April 7, 2026
The company made the announcement via a post on X, saying its “ability to design, fabricate, and package ultra-high-performance chips at scale” would help Terafab hit its target of producing 1 terawatt per year of compute power.
Musk first unveiled Terafab last month. The plan centers on two advanced chip factories in Austin, Texas — one focused on powering cars and humanoid robots, the other built for AI data centers in space.
Tesla and SpaceX will operate the factories jointly. Musk has made no secret of his desire for greater control over semiconductor supply chains as demand grows across AI, robotics, and space computing.
Intel’s involvement adds a key piece: the company brings established chip design, fabrication, and packaging capabilities that the Musk-led group would otherwise need to build from scratch.
Intel also noted it hosted Musk at its facilities over the weekend, just days before going public with the partnership.
Intel stock climbed roughly 2-3% on Tuesday following the news. The stock has already gained around 38% year-to-date in 2026, making it one of the stronger performers in the semiconductor space this year.
Tesla stock moved in the opposite direction, falling close to 2% on the same day.
SpaceX, which filed confidentially for a U.S. IPO last week, is expected to launch its market debut later this year.
SpaceX described Terafab on X as “the most epic chip-building effort ever — combining logic, memory, and advanced packaging under one roof.”
Wedbush analysts have suggested the Terafab facility could be an early step toward an eventual Tesla-SpaceX merger, potentially as soon as next year.
For now, the focus is on getting the Austin facility off the ground. Intel’s entry into the project makes the partnership a more concrete industrial effort rather than a concept announcement.
The Terafab website went live at terafab.ai following the announcements from the companies involved.
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