Musk to Spend $3 Billion to Build a Research-Focused Chip Factory, with Chip Project Expected to Use Intel Technology
Source: Global Market Report
Tesla CEO Elon Musk stated that the company plans to spend about $3 billion to build a research chip factory in Texas.
During the company’s quarterly earnings call on Wednesday, Musk revealed that the research facility will be built within the existing Texas Gigafactory campus. The factory will only produce a few thousand wafers each month and will serve as a platform for testing new technologies and processes.
Musk said that SpaceX will lead the early stage of a larger chip project called Terafab. Intel has signed up to support the project as a partner, providing its expertise in chip design, manufacturing, and packaging.
Musk said, “So far, what we’ve clarified is that Tesla is responsible for the research chip factory, and SpaceX is responsible for the initial phase of Terafab. As for the rest, we’ll continue to study.”
Terafab is Musk’s ambitious plan to advance chip manufacturing, with teams from Tesla, SpaceX, and his artificial intelligence company xAI all participating in the project.
Musk stated that the goal of Terafab is to secure enough chip supply for his companies, as foundries like TSMC and Samsung Electronics will not be able to meet such demand.
During the call, Musk was asked to elaborate on Intel’s participation. He replied that the plan is to use Intel’s most advanced process, 14A. This process currently has not received any customer orders. This remark pushed Intel’s stock price up by about 3% in after-hours trading on Wednesday.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Risk aversion outweighs inflation concerns, US and European government bonds rise across the board, US Treasury yields plunge more than 10 basis points intraday
Investors concerned about rising inflation are shifting their focus to the potential impact of high borrowing costs on economic growth. Some commentators have linked the recent decline in U.S. Treasury yields to surging financing costs for AI-related companies, suggesting that pressure in the technology stocks and AI infrastructure sectors is driving funds toward safe-haven assets such as government bonds.
Google Quantum Computing Achieves Breakthrough: Error Rate Reduced by 40 Times, Overcoming Key Resource Bottleneck
Google has validated a technology called "motaic cultivation" on its Willow processor, reducing quantum error rates by about 40 times and achieving a T-state logical fidelity of 99.99%, setting a new record in the field. If this breakthrough can be successfully scaled, it will greatly reduce the hardware requirements for building fault-tolerant quantum systems, which holds significant implications for the commercialization of quantum computing.
Goldman Data: Hedge Funds Sell AI Stocks at Second-Fastest Pace in a Year
Crypto prices
More
