Intel’s Foundry Business Thrives with Tesla’s 14A Partnership as CEO Highlights Numerous 18AP/14A Customer Engagements

Intel has made significant strides with its 18AP and 14A process nodes, garnering substantial interest from major customers, notably Tesla, which has already selected the 14A technology for its operations.

Intel’s 18AP & 14A: Major Innovations Paying Off, with Tesla as Just the Start

During the Q1 2026 earnings briefing, Intel CEO Lip-Bu Tan announced a groundbreaking alliance with prominent figures such as Elon Musk from Tesla, along with SpaceX and xAI, to collaborate on the ambitious Terafab project. This partnership solidifies the confidence in the 14A process technology, which is set to play a vital role in this high-profile initiative. The collaboration marks a crucial step forward for Intel as it seeks to elevate its Foundry Business profile through partnerships with key industry players.

Tan expressed his enthusiasm, stating, “I can think of no better partner than Elon Musk, ”appreciating their shared drive to disrupt traditional norms within the foundry sector.

Elon Musk echoed this excitement, praising the Intel 14A process as “state-of-the-art.”However, he acknowledged that the technology is still under development, indicating that while it’s not yet ready for mass production, it will reach maturity in time for TeraFab’s expansion, allowing for the production of Tesla’s custom silicon chips.

At a time when advanced wafer capacity is in short supply, this enables us to have better control over our supply chain. Intel has pioneered nearly every major innovation that has enabled dimensional scaling and high-volume manufacturing of silicon transistors over the last six decades. We have always been willing to take measured risks that have eventually paved the way for step-function improvements in transistor density, cost, power, and performance. 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.

Lip-Bu Tan – Intel CEO

Intel’s announcement closely follows industry speculations regarding the upcoming details of the TeraFab project. Musk has been actively detailing Tesla’s advancements in developing AI-focused custom silicon, relying on manufacturing partnerships with Samsung and TSMC for their latest chip offerings, including AI5, AI6, and AI6.5.

Intel’s latest foundry process roadmap. Image: Intel Corporation

Moreover, Intel is not solely focusing on the 14A node; it is also making headway with the 18AP node. Current reports indicate that the 14A is performing better at this stage, showcasing greater maturity and yield compared to the 18A node, which positions Intel favorably within the competitive landscape of next-generation process technologies.

Tan indicated a positive outlook regarding ongoing engagements with external clients, expressing a preference for partners to publicly announce their collaborations rather than Intel revealing them prematurely. Tesla’s prior announcement of the 14A agreement exemplifies this approach, and similar expectations are set for future partnerships. He anticipates increased design commitments to emerge between 2026 and 2027.

On Intel 18AP and Intel 14A, we continue to be encouraged by our external engagements. Intel 14A maturity, yield, and performance are outpacing Intel 18A at a similar point in time, and we continue to develop PDKs with multiple customers actively evaluating the technology. Their partnership has been critical, and their feedback is continuing to help us define the technology so that we can cater to their needs. We expect to see earlier design commitments emerge beginning in 2026 and expanding into 2027.

On 14A, we are making great progress in terms of yield and cycle time, and we are engaging heavily with multiple customers. My style is under-promise, over-deliver, so we have no plan to announce the customer unless the customer wants to announce it, and we support that. Back to TeraFab, clearly Elon and I believe that global supply is not keeping pace with the rapid acceleration in demand. We both share the vision that we are going to learn a lot together, exploring innovative ways in process and manufacturing. It is a very broad relationship, and we will update you as we go.

On 14A, we already have the 0.5 PDK available and we are aiming for the 0.9 PDK. That is where customers start to decide which products, how much volume, and capacity we need.

Lip-Bu Tan – Intel CEO

The introduction of the 0.9 PDK for the 14A node will facilitate customers in outlining their plans regarding product specifics, volume, and capacity at Intel’s fabrication facilities.

On 14A, we already have the 0.5 PDK available and we are aiming for the 0.9 PDK. That is where customers start to decide which products, how much volume, and capacity we need.

Lip-Bu Tan – Intel CEO

The collaboration with Tesla marks a significant milestone in Intel’s Foundry initiative, showcasing the growing confidence in the 18AP and 14A technologies. Expect further announcements from other customers reaffirming their commitment to these advanced process technologies soon.

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