Intel announced that Tesla will use its 14A manufacturing process for chips at the company’s Terafab AI chip complex in Austin. The 14A node is still in development, with risk‑production slated for 2027 and mass production expected in 2027 or 2028. This marks Intel’s first major external customer for the 14A process, a milestone that validates the technology and provides a high‑profile commitment for the company’s foundry‑first strategy.
The partnership signals that Intel’s foundry capabilities are maturing and offers a tangible customer base that can help justify further investment in the 14A process. It is a key step toward Intel’s goal of becoming the second‑largest foundry by 2030 and a tangible demonstration of progress against competitors such as TSMC.
Intel’s Q1 2026 earnings showed revenue of $11.7 billion, down 14.6% from the $13.7 billion reported in Q4 2025 and 7.8% from the $12.7 billion in Q1 2025. The company reported a non‑GAAP EPS of $0.00, meeting its own guidance but falling short of analyst consensus of $0.00–$0.01. The revenue decline reflects a slowdown in demand across Intel’s core segments, while the partnership with Tesla offers a potential revenue stream as the 14A process matures.
Despite the revenue dip, Intel’s guidance for the quarter remains unchanged: revenue of $11.7 billion to $12.7 billion and a non‑GAAP EPS of $0.00. Management expressed confidence in the long‑term value of the 14A process and the Tesla partnership, but acknowledged that the foundry business remains unprofitable and will require continued investment.
Investors welcomed the partnership as a validation of Intel’s foundry capabilities, adding to a broader rally driven by optimism around Intel’s turnaround strategy. The announcement underscores Intel’s progress in its foundry‑first strategy and its efforts to compete with TSMC.
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