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
Ahead of Earnings Report, Bank of America Raises Target Price for TSMC: 2nm Capacity Ramp-Up Boosts Sales Expectations and Profit Margins
Ahead of TSMC’s Q3 earnings report, Bank of America Merrill Lynch raised its US stock target price to $620 and maintained a Buy rating. Q3 revenue is expected to exceed the upper end of guidance, with the proportion of 2nm process rising from 3% to 11% in a single quarter, becoming the biggest highlight. Q4 sales are expected to increase by another 11% quarter-on-quarter, targeting a full-year growth rate of 40%. The current stock price corresponds to a forward P/E ratio of 16, which is still at the historical median. Bank of America believes the valuation is “not demanding,” implying approximately 37% upside to the target price.
AI trading cools down and storage chip competition intensifies, Korean stocks plunge over 5%, marking a second consecutive day of sharp decline; SK Hynix drops nearly 8%
On Tuesday, the Korea Composite Stock Index (KOSPI) dropped by as much as 5.1%, triggering the Sidecar circuit breaker mechanism on the exchange and suspending programmatic sell orders for five minutes. Both Samsung Electronics and SK Hynix fell more than 6%, marking five consecutive days of decline. Japan's SoftBank Group plunged over 8%, while AI industry-related stocks such as Tokyo Electron and Advantest also dropped by more than 5%.
Wall Street giants' financial reports tonight: With stock prices trapped in technical correction, even a 20% profit increase can hardly ease triple anxiety
Shares of major US banks hovered in a technical correction zone on Tuesday as the earnings season kicked off, with long-term borrowing costs rising to their highest levels in decades. This has heightened market attention on bank executives’ assessments of US consumer health and credit prospects.
UBS Earnings Season Preview: Strong Momentum from AI Spending, Favoring Lam Research (LRCX.US) and Texas Instruments (TXN.US), Remaining Cautious on Western Digital (WDC.US)
Lam Research (LRCX.US), Texas Instruments (TXN.US), and Western Digital (WDC.US) are set to release their quarterly earnings reports in the coming days. UBS believes that, with continued high spending on artificial intelligence, all three companies are likely to benefit from this trend.
Crypto prices
More
