Tesla plans to rely on Intel’s advanced 14A semiconductor manufacturing process to produce chips at its Terafab project, Chief Executive Officer Elon Musk said on Wednesday during Tesla’s earnings conference call. The disclosure came after Intel was confirmed as a participant in the Terafab effort earlier this month.
Markets reacted to the news in extended trading, with Intel shares rising 2.8% after the comments.
Intel’s participation in Terafab was announced earlier this month when the chipmaker joined Tesla and SpaceX in the multi-company project. The stated objective is to manufacture processors that will support Tesla’s and SpaceX’s ambitions in robotics and data center infrastructure.
"Given that by the time Terafab scales up, 14A will be probably fairly mature or ready for prime time, 14A seems like the right move, and we have a great relationship with Intel," Musk said on the call.
Investors and market observers could view the plan as a potential vote of confidence for Intel’s next-generation manufacturing roadmap. The company has previously faced yield challenges with some of its chip production, a point that makes adoption of its 14A node by a high-profile partner notable.
The Terafab initiative is framed around producing processors to accelerate work in robotics and data center compute, areas cited by the companies involved as targets for the new chips. Intel’s role in the project places its manufacturing process at the center of plans to scale those efforts.
Beyond the direct industry implications, the announcement has immediate market-level effects: the reported after-hours share price movement illustrates investor sensitivity to strategic manufacturing partnerships and to signals about the maturity of new fabrication nodes.
Details on the specific production timelines, volumes, or contractual arrangements were not provided during the call. The comments concentrated on the suitability of Intel’s 14A node for Terafab as the project moves toward scale.
Clear summary: Tesla will use Intel’s 14A process at its Terafab facility, Intel joined the Terafab initiative with Tesla and SpaceX earlier this month, Intel shares rose 2.8% in extended trading, and Musk said 14A should be mature by the time Terafab scales up.