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Benzinga
  • 7 months ago
Tesla CEO Elon Musk announced plans to use Intel's next-generation 14A manufacturing process to produce chips at Tesla's Terafab AI chip complex in Austin. The deal gives Intel its first major customer for the technology, a critical step as Intel has warned it may exit contract manufacturing without external customers. Intel shares rose 3.6% in extended trading. Terafab will include two chip factories for vehicles, humanoid robots, and space data centers.
Transcript
00:00It's Benzinga, bringing Wall Street to Main Street.
00:02Tesla CEO Elon Musk said the company plans to use Intel's next-generation 14A manufacturing
00:08process to produce chips at its TerraFab AI chip complex in Austin, according to Reuters.
00:13The deal would give Intel its first major customer for the technology,
00:17marking a key step in its contract manufacturing efforts. As the company has said,
00:21it may exit the business if it fails to secure external customers.
00:25Intel previously said it was in talks with large customers, but had not named one.
00:31Intel shares rose 3.6% in extended trading,
00:35while Tesla shares fell slightly after hours following increased capital spending plans.
00:40Musk said TerraFab will include two chip factories for vehicles,
00:44humanoid robots, and space data centers. Key details including costs,
00:48operations, and timing remain unclear. For all things money, visit Benzinga.com.