Tesla has agreed to become a foundry customer for Intel’s upcoming 14A manufacturing process, adding another major silicon partner to its supply chain. Neither company has disclosed financial terms, production timelines, or the specific chip that Intel will manufacture for the automaker.
Tesla Signs Onto Intel 14A Manufacturing Process
Tesla has added Intel to its growing roster of silicon partners by agreeing to use the chipmaker’s upcoming 14A manufacturing process, [notateslaapp.com] reported. The agreement emerged alongside a broader financial and operational update from Intel, which included progress reports on its 18A node and a $20 billion equity raise designed to fund new factories for its foundry expansion. The two companies have a history of collaboration. Earlier this year, Tesla and SpaceX partnered with Intel on the Terafab project, an ambitious chip factory initiative intended to eventually produce Tesla semiconductors in-house. However, the 14A agreement operates separately, with Intel slated to manufacture the hardware inside its own fabrication plants.
Why the Intel Foundry Deal Matters for the Chip Industry
Simply Wall St’s Bailey Pemberton notes that Tesla provides Intel with a high-profile external client willing to bet on its leading-edge roadmap. Intel needs major external customers to prove it can successfully compete with established foundry giants Taiwan Semiconductor Manufacturing Company and Samsung Electronics on cutting-edge nodes. While the exact chip remains unconfirmed, industry observers have evaluated several candidates for the 14A production line. A custom infotainment processor is considered unlikely, given Tesla’s historical reliance on off-current off-the-shelf hardware. The initial Media Control Unit ran on an Nvidia Tegra processor, MCU 2 used an Intel Atom chip, and MCU 3 switched to an AMD Ryzen processor.
Tesla AI5 Chip Timing Mismatches Intel 14A Node
The hardware slated for Intel’s 14A process is unlikely to be the upcoming AI5 processor. Tesla’s AI5 chip already utilizes a dual-foundry strategy split between Samsung and TSMC, with Samsung initiating trial production at its Texas fabrication facility ahead of a planned 2027 mass production target, [notateslaapp.com] reported. Because a single AI5 chip delivers five times the computational power of two AI4 chips combined, demand is exceptionally high, making a backup supplier logical. However, timing creates a mismatch for AI5. Intel markets its 14A node as a direct competitor to TSMC’s 1.4nm-class A14 technology, which targets a commercial window around 2028. Because AI5 relies on Samsung’s 2nm and TSMC’s 3nm nodes, any silicon built on Intel’s 14A process will likely utilize a more advanced architecture. Industry analysts point to AI6 or an entirely unannounced processor as the leading suspects for the 14A contract, even though Samsung reportedly holds a $16 billion contract for AI6. Conversely, the upgraded AI4+ computer is almost certainly excluded from the deal. Tesla plans to offer the AI4+ hardware upgrade to HW3 vehicle owners as a pathway to unsupervised autonomy well before Intel’s 14A manufacturing lines become operational.
Related reading