April 22 (Reuters) – Tesla’s Chief Executive Officer Elon Musk said on Wednesday the company plans to use Intel’s advanced 14A manufacturing process to make chips at its Terafab project.
Intel’s shares rose 2.8% in extended trading.
Intel joined Musk’s Terafab AI chip complex earlier this month with SpaceX and Tesla to make processors to fuel the billionaire’s robotics and data center ambitions.
“Given that by the time Terafab scales up, 14A will be probably fairly mature or ready for prime time, 14A seems like the right move, and we have a great relationship with Intel,” Musk said during Tesla’s earnings conference call.
The move could boost investor confidence in Intel’s next generation manufacturing process after the firm has previously struggled with yields for its chips.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Pooja Desai)
