In 2025, Intel Corp CEO Lip-Bu Tan said the company could exit its chip manufacturing business if it failed to secure external customers. Today, the company’s shares surged as Elon Musk’s Tesla Inc. signaled plans for a deal.<\/p>\n
The rally followed Intel’s strong first-quarter earnings and comments from CEO Tan, who highlighted a deepening collaboration with Musk’s companies, including Tesla, SpaceX and xAI.<\/p>\n
“I can think of no better partner than Elon Musk,” Tan said on Thursday during Intel’s earnings call. “We are excited to explore innovative ways to refactor silicon process technology.”<\/p>\n
Earlier on Wednesday, it was reported that Tesla plans to use Intel’s next-generation 14A manufacturing process for its TeraFab AI project, marking a potential breakthrough moment for Intel’s struggling foundry ambitions.<\/p>\n
Don’t Miss:<\/p>\n
Musk earlier said Tesla plans to use Intel’s 14A process for its TeraFab AI chip complex in Austin, a project aimed at powering robotics, autonomous systems and data center workloads.<\/p>\n
The agreement could become Intel’s first major customer win for its advanced manufacturing node.<\/p>\n
Intel’s 14A technology is central to its effort to compete with Taiwan’s leading chipmaker, Taiwan Semiconductor Manufacturing Co., in the global foundry market.<\/p>\n
During the call, Tan said Intel is engaging with multiple customers and highlighted that the Tesla partnership remains in early stages.<\/p>\n
“It is a very broad relationship, and we will update you as we go,” he said. “We have multiple other customers we are engaging. Stay tuned.”<\/p>\n