Elon Musk is accelerating the Terafab project, a vertically integrated AI chip factory. This facility will supply hardware to Tesla, SpaceX, and xAI.
Intel will serve as a key partner to refactor silicon fabrication technology. The initiative aims to produce chips with an annual computing capacity of 1 terawatt.
This goal represents approximately twice the current manufacturing capacity in the United States. Tesla is currently recruiting semiconductor engineers in Taiwan to develop advanced processes for AI hardware.
The move toward vertical integration challenges the foundry-dependent model of the semiconductor industry. Intel stock rose over 50% following reports of the partnership. This rally occurred over the preceding eight trading sessions.