# Tesla plans to use Intel’s next-gen 14A process for chips at its Terafab AI hub in Austin.

*semiconductor · news · 2026-04-23 · CNBC TV18*

## Key points

- Tesla will be Intel's first major external customer for its 14A manufacturing process.
- Intel's entry into Tesla's Terafab project helps prevent a potential exit from chip manufacturing.
- Terafab aims to produce one terawatt of computing capacity annually, double current US output.
- Building Terafab's chip capacity could require $5 trillion to $13 trillion in capital expenditure.
- Intel's 14A process at Terafab may establish it as a serious rival to TSMC in advanced chips.

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

[Read the full story on CNBC TV18](https://www.cnbctv18.com/world/tesla-picks-intel-14a-for-terafab-chips-as-intel-lands-first-external-customer-ws-l-19891672.htm)

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