“By establishing a massive, dedicated semiconductor pipeline for AI-centric hardware, Intel and Musk are insulating themselves from geopolitical and supply chain volatilities.”
Intel is contributing manufacturing expertise to Musk’s Terafab. This is Intel admitting it cannot compete with TSMC on its own. Musk gets a fabrication partner with actual semiconductor experience. Intel gets a lifeline. Whether this produces chips or just press releases remains to be seen. The 18A process node is Intel’s last real shot at relevance.