Intel To Disclose Full Details of Elon’s Ground-Breaking TeraFab Project That Will Reshape The Chipmaking Industry

Apr 16, 2026 at 02:10am EDT
Elon Musk Just Visited Intel's Oregon Fab, The Same Fab Producing Cutting-Edge Panther Lake & Next-Gen Chips on 18A

Latest details suggest that Intel is weeks away from unveiling details on Elon's Terafab chipmaking project, which is set to reshape the industry.

Elon Musk's TeraFab Project Is Taking Shape As Intel Is All Set To Unveil Its Plans In A Few Weeks

Dylan Martin of CRN has shared an interesting scoop related to Elon Musk's Terafab project, which is being built in partnership with Intel.

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Intel plans to disclose to staff the “scope and nature” of its involvement with Elon Musk’s ambitious “Terafab” chip manufacturing project in the “coming weeks,” according to a memo its CEO, Lip-Bu Tan, sent last week.

Tan sent the memo, which was seen by CRN, to Intel employees last Friday, two days after the semiconductor giant announced its involvement with Musk’s companies—SpaceX, xAI and Tesla—on Terafab, a potential boon to Intel amid its latest turnaround attempt.

via CRN

In this matter, Intel's CEO himself, Lip-Bu Tan, has sent out an internal memo to Intel Employees which states plans to disclose the "scope and nature" of the project in the coming weeks. This will obviously be highly anticipated given how ambitious the Terafab project is.

Just to put things into perspective, the Terafab project will have two phases; one phase is the construction of fabs dedicated to automotive and robotics chips, while the second phase centers around chip production for AI. Tesla just unveiled its ambitious AI5 chip, which it has set out to compete against NVIDIA's Hopper and Blackwell offerings. The company also announced that it is working on the next-gen A16 chip, & also the Dojo3 Supercomputer project. The AI5 chip is currently being manufactured at TSMC and Samsung, but it will be Tesla's primary goal to shift production in-house at Terafab when it becomes operational.

Meanwhile, the Terafab alliance with Elon marks a major deal for Intel and a means to get back in the limelight. Intel itself has been trying to stir up some buzz with its own Intel Foundry plans, aiming to enlist some major players, such as NVIDIA itself.

There have been rumors that future chips from NVIDIA may have some production dedicated to Intel's Fabs, while Terafab is likely going to be limited to Tesla, SpaceX, and xAI chip production, exclusively. In the pilot phase, Terafab will reportedly produce around 3000 wafers per month by 2029, and that will be increased gradually as the project scales up.

The Terafab project will be responsible for building high-stakes silicon logic, memory, and packaging capabilities, states CRN. So it will be a major deal as Intel shares further updates on this project.

About the author: A Software Engineer by training and a PC enthusiast by passion, Hassan Mujtaba serves as Wccftech's Senior Editor for hardware section. With years of experience in the industry, he specializes in deep-dive technical analysis of next-generation CPU and GPU architectures, motherboards, and cooling solutions. His work involves not only breaking news on upcoming technologies but also extensive hands-on reviews and benchmarking.

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