Elon Musk announced that Terafab, his new chip manufacturing facility, will use Intel's cutting-edge 14A process technology. The partnership will supply AI chips for both Tesla and SpaceX operations. This marks a significant customer win for Intel's foundry business, which has been fighting to establish itself as a credible alternative to TSMC.
Intel's foundry division has been a money-losing drag on the company — landing Musk's Terafab as a 14A customer is a credibility signal that could re-rate the stock. It also means Tesla and SpaceX are diversifying away from TSMC dependence, which has indirect implications for TSMC's dominance and for AI chip supply chains broadly. Investors in INTC will want to watch whether this converts into meaningful revenue guidance.
Intel Q2 2025 earnings call: listen for any revenue guidance tied to 14A customer commitments. TSMC monthly sales data (released first week of each month): any slowdown could reflect customer diversification. Any official Terafab groundbreaking or capacity announcements from Musk.
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