"Our ability to design, fabricate, and package ultra-high-performance chips at scale will help accelerate Terafab's aim to produce 1 TW/year of compute to power future advances in AI and robotics."
"Building a chip fab is one of the most difficult and expensive corporate infrastructure projects out there, typically requiring years of time and more than $20 billion to create a facility with a huge clean room for thousands of ultra-precise machines to carve silicon."
"Intel has been hunting for large anchor customers to support its foundry business, and now it has two. Still, if investors thought that Terafab would be a greenfield approach based on SpaceX and Tesla's unique approach to engineering, that may not play out."
"Once the leading U.S. silicon producer, Intel has seen rivals Nvidia and AMD take the lead in developing advanced processors and adopt the 'fabless' business model where chip designers outsource the manufacturing of their semiconductors."
Intel is joining SpaceX and Tesla to establish a semiconductor factory in Texas, although the specifics of its contributions remain unclear. The collaboration aims to produce 1 TW/year of compute for advancements in AI and robotics. Building a chip fabrication facility is complex and costly, typically exceeding $20 billion. Intel, seeking large anchor customers for its foundry business, may provide the necessary expertise. Despite its past leadership in silicon production, Intel faces competition from Nvidia and AMD, who have adopted a fabless model. Intel's stock rose following the announcement.
Read at TechCrunch
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