# Intel has teamed up with SpaceX, xAI and Tesla to support Elon Musk’s Terafab project, a U.S.

*semiconductor · news · 2026-04-08 · Business Today*

## Key points

- Intel will manufacture chips for Elon Musk's Terafab project in Texas as a key partner.
- Terafab aims to produce 1 terawatt of compute per year, starting with 100,000 wafers monthly.
- Intel's advanced 18A process node will likely underpin Terafab's initial semiconductor production.
- The partnership supports Intel's IDM 2.0 strategy and could restore its AI chip leadership.
- Intel's shares rose over 2% following the announcement of its involvement in Terafab.

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

[Read the full story on Business Today](https://www.businesstoday.in/technology/story/intel-teams-up-with-elon-musk-for-terafab-ai-chip-project-everything-you-need-to-know-524590-2026-04-08)

---

Canonical: https://newsio.io/n/bbdacb2f-5ca3-4d25-8f77-2300f7a64eab/intel-has-teamed-up-with-spacex-xai-and-tesla-to-support-elon-musks-terafab-proj
Summarized by Newsio from Business Today. https://newsio.io/how-it-works