Intel enters pact with Tesla and SpaceX for Terafab

Intel has established a manufacturing partnership with Elon Musk’s corporate portfolio, including Tesla, SpaceX, and AI firm xAI. The project, named Terafab, aims to build a semiconductor fabrication plant in Austin, Texas.

In a public statement, posted on X, Intel confirmed it will work with the companies to “design, fabricate, and package ultra-high-performance chips at scale”. The chipmaker stated the collaboration will “help refactor silicon fab technology” to support advances in AI and robotics. Intel CEO Lip-Bu Tan characterized the effort as a “step change in how silicon logic, memory, and packaging will get built in the future.”

Elon Musk has indicated the project is necessary because the semiconductor demand across his companies is slated to far outstrip the supply it can get from current partners, which include Nvidia, Samsung, and TSMC. The Texas facility targets an eventual output of one terawatt of computing power annually.

…Read the full article to see Yole Group’s analysts comments.

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Source: www.eetimes.com