Intel is making a bold move as it continues to reshape its future, and a big part of that plan involves working closely with Elon Musk. During a recent earnings call (transcript here), Intel CEO Lip-Bu Tan made it clear that the company is fully committed to this partnership, even going as far as saying there is “no better partner” than Musk.

This partnership, which involves companies like Tesla, SpaceX, and xAI, is centered around a project known as TeraFab. While the exact details are still not fully clear, the collaboration appears to focus on Intel’s upcoming 14A chip manufacturing process. The idea is to find new and faster ways to scale semiconductor production, especially as demand continues to grow worldwide.

Intel CEO Lip-Bu Tan discusses latest partnerships in earnings call

“As we look to continue challenging the status quo, I can think of no better partner than Elon Musk. We recently announced our partnership with SpaceX, xAI, and Tesla to support TeraFab.

Elon and I share a strong conviction that global semiconductor supply is not keeping pace with the rapid acceleration in demand. We are excited to explore innovative ways to refactor silicon process technology, looking for unconventional ways to improve manufacturing efficiency that will eventually lead to a dynamic improvement in the economics of semiconductor manufacturing.”

Lip-Bu Tan, Intel Q1 2026 earnings call

During the earnings call, Tan explained that both Intel and Musk share the same concern: the global semiconductor supply is struggling to keep up with rising demand. This has become a major issue across industries, from consumer electronics to AI and automotive sectors. Because of this, both sides are looking at new ways to improve how chips are made, rather than relying only on traditional methods.

Instead of just a simple business deal, this partnership could turn into something much bigger. Tan hinted that they are exploring “unconventional” approaches to chip manufacturing. The goal is to improve efficiency, reduce costs, and speed up production timelines. If successful, this could have a major impact on how future chips are developed and produced.

It’s a big deal for Intel’s foundry business, which has been facing challenges. The company has been trying to attract more customers to use its manufacturing services, and TeraFab is one of the first major partners tied to the 14A process. Even though Intel is still dealing with financial pressure in this segment, the company sees this partnership as a step in the right direction.

Tan also pointed out how much things have changed for Intel over the past year. Earlier, the focus was on survival and stability – “A year ago, the conversation about Intel Corporation was about whether we could survive,” said Tan. Now, the company is looking at how quickly it can expand production and meet growing demand.

About the Author

Abdul Haddi

Abdul is a tech writer and Editor for PC Guide, specializing in all things tech, gaming, and hardware.