Intel and SpaceX collaborate on next-generation 14A process node for Texas plant

Elon Musk’s SpaceX has proposed a plan to initially invest $55 billion in the construction of a new semiconductor production facility, known as Terafab, in Texas.

According to a filing made public on Wednesday, the rocket company is planning to develop a next-generation, vertically integrated manufacturing and advanced fabrication facility.

If the project successfully passes through all its planned phases, the total capital investment is estimated to reach $119 billion.

The Terafab project is designed to manufacture advanced chips and GPUs domestically to power critical future technologies.

These high-performance chips will be utilised for Tesla’s humanoid robots, known as Optimus, alongside self-driving hardware and extensive AI data centres.

"We either build the Terafab or we don’t have the chips, and we need the chips, so we build the Terafab," Musk stated regarding the necessity of the project.

The facility also plans to utilise Intel’s 14A process node, highlighting a close collaboration with the veteran technology firm for manufacturing purposes.

This move aligns with broader goals to boost domestic chipmaking and protect against geopolitical supply shocks.

The entrepreneur envisions the project eventually supporting a terawatt of annual computing power, reflecting the massive scale required for his intensifying investments in robotics.

This announcement follows a series of significant corporate shifts, including the earlier acquisition of Musk’s AI startup, xAI, to build space-based data centres.

As SpaceX targets an Initial Public Offering in June that could value the firm at $1.75 trillion, the Terafab represents a pivotal step in consolidating Musk's far-reaching industrial and artificial intelligence ecosystem.