Intel Partners with Tesla, SpaceX, xAI on Terafab Project

Intel announced on April 7, 2026, that it is partnering with Tesla, SpaceX, and xAI on the Terafab project, a ambitious initiative to build a vertically integrated semiconductor manufacturing complex in Austin, Texas. The collaboration aims to produce up to one terawatt-year of AI compute capacity annually, supporting applications in robotics, autonomous vehicles, and space-based computing.

The Terafab facility will consolidate multiple stages of chip production under one roof, including design, logic chip fabrication, high-bandwidth memory, advanced packaging, testing, and photomask creation. This integrated approach is designed to accelerate development cycles by minimizing delays from shipping components across global supply chains. The project includes two specialized plants: one focused on chips for Tesla's Optimus humanoid robots and Full Self-Driving robotaxi systems, and another for space-hardened processors, such as the D3 chip, intended for orbital AI data centers powered by solar energy.

Intel's involvement brings its expertise in high-volume chip design, fabrication, and packaging to the effort. The company stated, "Our ability to design, fabricate, and package...