Tesla Plans $3 Billion Texas Chip Fab Using Intel 14A
Tesla plans to spend roughly $3 billion to build a research chip factory at its Giga Texas campus, Chief Executive Officer Elon Musk said, as an early phase of a broader effort to establish chip manufacturing at large scale. SpaceX will handle the initial phase of the scaled-up Terafab project, while Tesla builds the research facility and continues to work out the rest of the deployment.
Musk said Tesla intends to use Intel’s 14A manufacturing process for the effort, saying it should be ready by the time Terafab scales up, though he did not specify whether Tesla would use Intel’s existing plants or license the technology. Tesla also raised its 2026 capital-expenditure forecast to $25 billion from $20 billion and said it expects negative free cash flow for the rest of the year.
From the sources (25 posts)
@sawyermerrittTesla has just released their Q1 earnings results. Highlights: • EPS (non-GAAP): $0.41 (vs. $0.33 est) • Revenue: $22.4B (vs. $21.4B est) • Gross margin: 21.1% • Net income (GAAP): $1.45B (vs $1.17B est) • Free cash flow: $1.44B
@sawyermerrittTesla: "Cortex 2 is now online and has started running training workloads. We continue to ramp our onsite training infrastructure to ensure sufficient compute resources for the development of our AI products and services. We are also contin
@sawyermerrittNew photo of Tesla's new Cortex 2 AI training cluster:
@sawyermerrittTesla research chip fab ground breaking at Giga Texas.
@sawyermerrittQ2 is going to be crazy for @Tesla GPU training capacity expansion. Nearly a doubling.
@sawyermerrittElon: We've begun to discuss ideas for Dojo 3 (chip). We've also finalized plans for the research chip fab at Giga Texas and will start construction this year.
@sawyermerrittNEWS: Tesla says it now expects 2026 capital expenditures to be $25 billion (up from $20+ billion before).
@edludlowTesla’s raised 2026 CapEx to $25 billion from $20 billion and sees negative free cash flow for the rest of the year.
@edludlowTesla CapEx forecast and historic: 2026: $25 Billion (up from $20B guided last quarter) 2025: $8.5 Billion 2024: $11.3 Billion 2023: $8.9 Billion 2022: $7.2 Billion
@sawyermerrittElon on Terafab: We're still working out details on deployment. The research fab (at Giga Texas) will be a $3B investment. There's some new physics we'd like to test out. SpaceX is going to take care of the initial phase of the scaled up Te
@wallstengineTesla CEO Elon Musk said Tesla plans to use Intel’s $INTC 14A process for its large-scale “Terafab,” calling it the right move as the node matures. He wants memory, logic, masks, and packaging under one roof for faster chip iteration.
@stocksavvyshayElon Musk said the company plans to use $INTC 14A process for its large-scale Terafab as the node matures. He also said $tsla wants memory, logic, masks and packaging under one roof to speed up chip iteration.
@firstadopterElon preannounces Intel’s 14A ramp. $INTC Elon Musk on Tesla earnings call: "Intel is excited to partner with us with some of the core manufacturing technologies. We plan to use Intel’s 14A process, which is state of the art. In fact, not
@firstadopterIntel has not yet officially confirmed 14A is happening, so this is an interesting turn of events! $INTC
@alphasenseinc$TSLA CEO Elon Musk says the company will build a $3 billion research fab in Texas to test new chip‑manufacturing ideas, while SpaceX will handle the first phase of the larger Terafab, with remaining responsibilities still being worked out
@dnystedtRT @wallstengine: Tesla CEO Elon Musk said Tesla plans to use Intel’s $INTC 14A process for its large-scale “Terafab,” calling it the right…
@alphasenseinc$TSLA CEO Elon Musk says the company will build a $3 billion research fab in Texas to test new chip‑manufacturing ideas, while SpaceX will handle the first phase of the larger Terafab, with remaining responsibilities still being worked out
@ftIntel boosted as Musk says his Terafab will use its latest chipmaking tech
@businessTesla plans to spend roughly $3 billion to build a research chip factory in Texas, according to CEO Elon Musk, an early phase of an effort to establish chip manufacturing at a massive scale
@polymarketJUST IN: Tesla plans to spend ~$3 billion to build a research chip factory on Giga Texas campus.
@edludlowRT @business: Tesla plans to spend roughly $3 billion to build a research chip factory in Texas, according to CEO Elon Musk, an early phase…
@edludlowThe details of Intel’s involvement also in this report: On the call, Musk was asked for more details of Intel’s involvement and responded by saying he planned to leverage that company’s most advanced production process — known as 14A — for
@dnystedtRT @PatrickMoorhead: Here is the pull from the $TSLA call discussing $INTC.
@firstsquawkTesla, SpaceX to use Intel 14A process to make AI chips at Musk's Terafab-NA
@firstsquawkTESLA INTENDS TO INVEST APPROXIMATELY $3B TO CONSTRUCT A RESEARCH CHIP PLANT IN TEXAS, PER CEO MUSK, AS AN INITIAL STEP TOWARD ESTABLISHING LARGE-SCALE CHIP MANUFACTURING.