Tesla will become a customer of Intel Foundry for the 14A process, which is Intel’s upcoming chip manufacturing technology.
For Intel, this is an important client. Bailey Pemberton of Simply Wall St writes that Tesla is a “high profile external client willing to bet on its leading edge roadmap.” Intel needs such trust to prove it can compete with TSMC and Samsung in the most advanced chip manufacturing.
The companies are already working together. At the beginning of the year, Tesla and SpaceX joined the Terafab project, a massive chip factory where Tesla hopes to eventually produce all its chips. The 14A contract seems separate: Intel is supposed to manufacture chips in its own facilities.
What kind of chip could be produced using the 14A process?
Theoretically, it could be a custom chip for the multimedia system. However, the chances are slim. Tesla usually buys ready-made processors: MCU 1 used Nvidia Tegra, MCU 2 used Intel Atom, and MCU 3 used AMD Ryzen. An Intel-designed chip for MCU 4 is possible but unlikely.
It is more likely that additional production capacity will be acquired for AI chips. The AI5 chip is already being manufactured by two suppliers, Samsung and TSMC. Samsung has begun trial production of AI5 at a factory in Texas, with mass production set to start in 2027. One AI5 chip provides five times more computing power than two current AI4 chips combined. It will first be used in Optimus robots and AI training clusters, before making its way to vehicles. Given such demand, a second supplier makes sense.
The timeline, however, suggests something newer. Intel is promoting the 14A as a competitor to TSMC’s A14 chip (1.4 nm class), which is expected to be ready around 2028. The AI5 chip is produced using 2 nm processes at Samsung and 3 nm processes at TSMC, so Intel’s chip will likely be more advanced. This points to an AI6 chip, although Samsung already has a $16 billion contract for AI6. It’s also possible this refers to a chip that Tesla has not yet announced.
What It Definitely Won’t Be
AI4+ (or AI4.5), which is an improved computer that Tesla wants to offer HW3 car owners as a path to driverless driving, is almost certainly out. Those drivers will need it long before 14A is ready.
As of now, we don’t know the prices or delivery dates. If the timeline holds at 2028, the mystery should be resolved, perhaps during Musk’s next update on the AI chip roadmap.
If it truly is AI6, Tesla will have two manufacturers for the same chip and still plan to keep its own factory.
Order your Tesla and take advantage of purchase bonuses using the referral link!
LovEV Newsletter
Want more content like this?
Sign up — we’ll send you a weekly summary once the newsletter launches.