Intel gains after Musk says Tesla's Terafab will use its 14A chipmaking process

Investing.com-- Tesla Inc (NASDAQ: TSLA) CEO Elon Musk said on Wednesday that the Terafab joint venture plans to use Intel’s advanced 14A manufacturing process to make semiconductors.

Answering an analyst question during Tesla’s post-earnings call, Musk said the 14A process was “not yet totally complete,” and will be “probably fairly mature or ready for prime time” by the time Terafab “scales up.” He did not provide a definite timeline.

Intel Corporation (NASDAQ: INTC) shares rose 1.9% in premarket trade Thursday.

Intel’s 14A chipmaking process is aimed at competing with key rival Taiwan Semiconductor Manufacturing Co (NYSE: TSM), although the American chipmaker is yet to disclose more details on the technology.

Musk had unveiled Terafab earlier this year as a joint venture between his companies– SpaceX, Tesla, and xAI– to establish a fully integrated semiconductor manufacturing facility in the United States. The facility is aimed at producing chips specifically for artificial intelligence applications.

Musk has set a lofty goal for Terafab to produce 1 terawatt per year of compute– far greater than current global chipmaking capacity, including that of TSMC, the world’s largest chipmaker.

Intel said in April it would join the venture to provide chipmaking technology, although more details on its involvement remained unclear.

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