AUSTIN, Texas — Semiconductor manufacturing company Intel announced on Tuesday that it will help with Elon Musk’s $20 billion chip-manufacturing facility project.
The company posted the news on X, a social media platform owned by Musk, saying that it would join the Terafab project—a joint venture between Musk’s companies Tesla, SpaceX and xAI. In the post, Intel said it will “help refactor silicon fab technology.”
“Our ability to design, fabricate, and package ultra-high-performance chips at scale will help accelerate Terafab’s aim to produce 1 TW/year of compute to power future advances in AI and robotics,” the post said.
Intel is proud to join the Terafab project with @SpaceX, @xAI, and @Tesla to help refactor silicon fab technology.
Our ability to design, fabricate, and package ultra-high-performance chips at scale will help accelerate Terafab’s aim to produce 1 TW/year of compute to power… pic.twitter.com/2vUmXn0YhH
— Intel (@intel) April 7, 2026
The name Terafab comes from the project’s goal of producing one terawatt of computing annually.
Musk announced the project last month in Austin, which will include a small advanced technology fabrication plant to be built in Austin near the Tesla Gigafactory. The location of the full Terafab facility is not known at this time, but Musk has said it would need to be approxiamately 1000 million square feet.