# Terafab is a $25 billion joint venture between Tesla, SpaceX, and xAI.

*semiconductor · news · 2026-04-08 · TNW*

## Key points

- Intel has become the primary foundry partner for Musk's $25 billion Terafab joint venture.
- Terafab aims to produce up to 200 billion custom AI and memory chips annually under one roof.
- 80% of Terafab's compute output is designated for SpaceX's planned AI satellite constellation.
- Intel will supply its 18A process node, the most advanced logic manufacturing technology made in the US.
- Analysts estimate Terafab's true capital needs at up to $5 trillion, far above the stated budget.

**Companies:** Intel, Tesla, SpaceX, xAI
**Countries:** United States

[Read the full story on TNW](https://thenextweb.com/news/intel-terafab-elon-musk-foundry-partnership)

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