Tesla's Terafab to adopt Intel's 14A process, Intel secures first major customer
Tesla CEO Elon Musk announced plans to use Intel's advanced 14A process for its Terafab AI chip project, marking a major breakthrough for Intel's foundry business. Tesla also reported a 17% Q1 profit increase.
📋 Article Processing Timeline
- 📰 Published: April 23, 2026 at 10:15
- 🔍 Collected: April 23, 2026 at 10:31 (16 min after Published)
- 🤖 AI Analyzed: April 23, 2026 at 11:58 (1h 27m after Collected)
Central News
(CNA, San Francisco, 22nd, Composite Foreign Report) Tesla CEO Elon Musk stated today that Tesla plans to adopt Intel's advanced 14A process technology to manufacture chips for its Terafab project.
According to Reuters, this move is a major breakthrough for Intel, which has been trying to restructure its business to attract external customers for its chip manufacturing process. Intel's upcoming "14A" process technology is aimed at competing with its biggest rival, Taiwan Semiconductor Manufacturing Co. (TSMC), but Intel had not previously announced any major external clients.
Intel shares rose 2.6% in after-hours trading. Intel previously mentioned it was in talks with major customers regarding the 14A technology but did not respond to requests for comment.
Earlier this month, Intel joined Musk's Terafab AI chip joint project, working alongside SpaceX and Tesla to manufacture processors to support Musk's ambitions in robotics and data centers.
Musk said during Tesla's earnings call: "Considering that by the time Terafab scales up, the 14A process will likely be quite mature or ready for mass commercialization, 14A seems like the right move, and our partnership with Intel is very good."
Because Intel has previously faced chip yield issues, this move is expected to boost investor confidence in Intel's next-generation process technology.
Ben Bajarin, head of tech consultancy Creative Strategies, stated that Intel's 14A technology "might be more important to Intel than people realize."
Bajarin said: "Having multiple partners as early design partners is important; it helps to iron out the processes and gain the necessary experience on advanced nodes. They absolutely have the advantage of scale, making them a fantastic first non-Intel customer."
According to AFP, Tesla reported an increase in Q1 profit today, stating that demand in the North American market is recovering as the company invests heavily in autonomous transport and artificial intelligence (AI).
The Musk-led electric vehicle company stated that profit for the quarter reached $477 million, up 17% from the same period last year, and revenue grew 16% to $22.4 billion.
Tesla had previously announced growth in vehicle sales for the first quarter, but the earnings release further clarified the sources of this growth. Tesla noted that markets in Asia and South America "continue to grow," while also "observing a demand recovery in Europe, the Middle East, Africa, and North America."
Tesla said it will launch "mass production" of the autonomous taxi Cybercab and the Tesla Semi this year, while preparations for the first large factory to produce Optimus robots will begin in the second quarter.
According to the AP, Musk also revealed during the call that Tesla might introduce the brand-new manual-drive sports car, Roadster, in about a month's time. (Translated by: Zhang Xiaowen) 1150423
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(CNA, San Francisco, 22nd, Composite Foreign Report) Tesla CEO Elon Musk stated today that Tesla plans to adopt Intel's advanced 14A process technology to manufacture chips for its Terafab project.
According to Reuters, this move is a major breakthrough for Intel, which has been trying to restructure its business to attract external customers for its chip manufacturing process. Intel's upcoming "14A" process technology is aimed at competing with its biggest rival, Taiwan Semiconductor Manufacturing Co. (TSMC), but Intel had not previously announced any major external clients.
Intel shares rose 2.6% in after-hours trading. Intel previously mentioned it was in talks with major customers regarding the 14A technology but did not respond to requests for comment.
Earlier this month, Intel joined Musk's Terafab AI chip joint project, working alongside SpaceX and Tesla to manufacture processors to support Musk's ambitions in robotics and data centers.
Musk said during Tesla's earnings call: "Considering that by the time Terafab scales up, the 14A process will likely be quite mature or ready for mass commercialization, 14A seems like the right move, and our partnership with Intel is very good."
Because Intel has previously faced chip yield issues, this move is expected to boost investor confidence in Intel's next-generation process technology.
Ben Bajarin, head of tech consultancy Creative Strategies, stated that Intel's 14A technology "might be more important to Intel than people realize."
Bajarin said: "Having multiple partners as early design partners is important; it helps to iron out the processes and gain the necessary experience on advanced nodes. They absolutely have the advantage of scale, making them a fantastic first non-Intel customer."
According to AFP, Tesla reported an increase in Q1 profit today, stating that demand in the North American market is recovering as the company invests heavily in autonomous transport and artificial intelligence (AI).
The Musk-led electric vehicle company stated that profit for the quarter reached $477 million, up 17% from the same period last year, and revenue grew 16% to $22.4 billion.
Tesla had previously announced growth in vehicle sales for the first quarter, but the earnings release further clarified the sources of this growth. Tesla noted that markets in Asia and South America "continue to grow," while also "observing a demand recovery in Europe, the Middle East, Africa, and North America."
Tesla said it will launch "mass production" of the autonomous taxi Cybercab and the Tesla Semi this year, while preparations for the first large factory to produce Optimus robots will begin in the second quarter.
According to the AP, Musk also revealed during the call that Tesla might introduce the brand-new manual-drive sports car, Roadster, in about a month's time. (Translated by: Zhang Xiaowen) 1150423
Choose to stand with the facts. Every sponsorship you make is a force to protect press freedom.
Download the CNA "First Hand News" APP to grasp the latest news instantly.
The text, images, and audio/video on this website may not be reproduced, publicly broadcast, or publicly transmitted and utilized without authorization.