Tesla will integrate Intel’s upcoming 14A semiconductor process into its planned Terafab complex in Austin, marking the first external customer for the technology. Terafab will include two advanced production facilities—one for vehicle and humanoid robot chips and another for space-based data center processors—targeting one terawatt of annual computing power.

Elon Musk characterized increased capital investment in chip manufacturing as vital to Tesla’s future revenue plans, though specifics on funding, operation, and commissioning responsibilities for the Terafab site remain undefined. No production start date has been announced for the Austin facilities.

The agreement provides a significant boost to Intel’s contract manufacturing strategy as it competes with industry leader TSMC, driving a 3.6% rise in Intel’s share price in after-hours trading. Intel leadership had warned it might exit the foundry business without key clients, making Tesla’s commitment critical to its roadmap.