Elon Musk’s Terafab megafactory will begin producing chips using Intel’s 14‑angstrom 14A process.

Short news summary:

- Intel will help SpaceX and Tesla launch mass production of chips in Texas.

This month it was revealed that Intel will support the joint venture Terafab, which both companies plan to build.

- Intel’s 14‑angstrom (1.4 nm) technology will form the basis for the chips.

At a recent conference Musk said that at the time of Terafab launch Intel’s 14A technology should be “sufficiently mature” and ready for mass production.

- It is unclear how licensing will work.

Bloomberg notes that from public statements by Tesla and SpaceX leaders it is not clear whether Tesla will obtain a license to the 14A technology or whether Intel will supply finished wafers made at its own fabs.

- Planned budget – $3 million.

Both partners will invest three billion dollars in a Texas research center with an experimental line for advanced semiconductor production. The center can process several thousand silicon wafers per month and will serve as a “launchpad” for scaling to Terafab.

- SpaceX will lead Terafab development.

According to Musk, SpaceX will play a key role because he is interested in creating large quantities of AI chips for space data centers.

- Tesla’s capital expenditures are rising.

This year the company plans to increase investments by 25 % to $25 million, given the priority Musk places on AI development across all his businesses.

- Without Terafab it will be hard to supply the needed volume of AI chips.

Musk emphasized that without this project they would not be able to meet growing demand for chips in the artificial intelligence sector.

- Intel is preparing for a quarterly report.

In the coming days Intel will present its financial results; analysts expect to discuss issues related to the 14A technology and future customers.