Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk, speaking at the company’s first-quarter 2026 earnings call on Sunday, said that the company plans to use Intel Corp’s (NASDAQ:INTC) next-generation 14A manufacturing process for chips at Terafab, the advanced AI chip complex he has envisioned in Austin.
Intel Gains A Crucial Outside Customer
Intel CEO Lip-Bu Tan warned last year that the company could exit chip manufacturing if it fails to secure an external customer, highlighting the stakes of any Tesla deal. Intel previously said it was in talks with large customers about 14A but had not identified a major external buyer. The move could hand Intel its first major outside customer for the technology and a badly needed win in its effort to build a contract-manufacturing business to rival Taiwan Semiconductor Manufacturing Co. (NYSE:TSM).
Intel’s role in Terafab first surfaced earlier this month, when Reuters reported that Tesla and Musk-controlled SpaceX planned two advanced chip factories in Austin to make processors for vehicles, humanoid robots and space-oriented data centers.
That dynamic was reflected in after-hours trading, where Intel shares climbed roughly 3.14% following Musk’s comments that Tesla plans to adopt Intel’s next-generation manufacturing process for its in-house AI chips.
Tesla Lifts Spending For Austin Ambitions
On Wednesday, Tesla also raised its 2026 capital-spending plan to more than $25 billion from …
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