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Musk, SpaceX to build Texas Terafab chip plant

By Drooid · Oct 7, 2026, 7:49 PM UTC · How we work

Summary

Musk Announces Texas Plant

Elon Musk announced Tesla and SpaceX will build and operate the Texas Terafab chip plant.
Intel CEO Lip-Bu Tan confirmed Intel will license its 14A process to Terafab.
Tesla and SpaceX committed US$16.8 bn to the first phase of the Grimes County site.
The pilot line will produce 3,000 wafers per month with silicon output starting in 2029.

Summary

Intel Shares Rise

Intel shares up 1.5% to $114.23 in pre-market after reports of continued involvement.
Gil Luria of D.A. Davidson said investors may reassess Intel if it is not a primary Terafab partner.
Jordan Klein of Mizuho said a TSMC-Musk deal would add competition and be a modest negative for Intel bulls.
Luke Rahbari of Equity Armor Investments suggested Musk mentioned TSMC to negotiate better unit prices with Intel.

History

Historical Context

In December 2015 Intel bought Altera for $16.7 billion, creating its Programmable Solutions Group. Under Pat Gelsinger’s 2021 IDM 2.0 plan, Intel expanded its foundry services to external customers, a move echoed by Tesla and SpaceX’s $16.8 billion Terafab Texas investment. The partnership aims to broaden U.S. chip production and challenge TSMC’s foundry lead.

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Musk Announces Texas Plant

Elon Musk announced Tesla and SpaceX will build and operate the Texas Terafab chip plant.
Intel CEO Lip-Bu Tan confirmed Intel will license its 14A process to Terafab.
Tesla and SpaceX committed US$16.8 bn to the first phase of the Grimes County site.
The pilot line will produce 3,000 wafers per month with silicon output starting in 2029.

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