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The Terafab partnership with Musk’s SpaceX, xAI, and Tesla is a scheme to build a massive chip factory complex in Texas with an initial investment of 55 billion dollars and a total cost that could reach 119 billion.
Every Tesla sold adds another ... driving culture on earth. Terafab is a $20–25 billion joint venture designed to become the largest semiconductor fabrication facility ever built, targeting one terawatt of AI compute ...
This facility forms a central element of Tesla’s broader North Campus expansion at Giga Texas. The project will add more than 5.2 million square feet of new industrial space. It sits alongside other advanced developments, including a Terafab for next-gen AI chips.
On May 11, 2026, news broke about Elon Musk's ambitious Terafab project, which could significantly benefit Intel Corp (NASDAQ: INTC) and various chip equipment companies. According to Wedbush, SpaceX plans to invest $55 billion into a proposed semiconductor manufacturing project in Texas, with total costs potentially reaching $119 billion if expansion phases proceed.
... SpaceX could invest as much ... to local documents tied to a tax abatement request. The Commissioners Court of Grimes County will hold a public hearing on June 3 to consider the deal....
Image courtesy of Tesla · The joint venture of SpaceX, Tesla and xAI has proposed a location for its massive, $55 billion chip manufacturing campus dubbed Terafab. Total costs may amount to $119 billion if the facility is expanded.
What makes the story especially interesting for Intel is the reported plan to use the company's future 14A manufacturing process. If that relationship ultimately materializes, Wedbush believes it could represent a meaningful validation of Intel's foundry ambitions at a time when the company is fighting to prove it can compete again in advanced chip manufacturing.
Intel’s recent foundry wins with companies such as Apple and TeraFab highlight a broader industry reality: advanced process technology alone is no longer sufficient.
The existing xAI logo will likely be phased out, and a new SpaceXAI logo, which conveniently still has the xAI letters in the name, will be designed and presented. The formation of SpaceXAI consolidates both hardware and software resources into a single entity. With the ongoing development of the $119 billion TERAFAB semiconductor fab and the new capabilities of the upcoming Starship V3, SpaceX is rapidly evolving beyond a traditional launch provider with an internet side business.
Terafab will eventually produce one terawatt of computing capacity a year, compared with about half a terawatt currently generated across the United States, Musk had said in March. Building enough chip capacity to power one terawatt of annual compute would cost between $5 trillion and $13 trillion in capital expenditure, according to Bernstein estimates. Tesla plans to use Intel’s 14A manufacturing process to make chips at the Terafab project.
As SpaceX outlines in their proposal, the new facility – dubbed “Terafab”, -- will be a "multi-phase, next-generation, vertically integrated semiconductor manufacturing and advanced computing fabrication facility."
Terafab ще бъде част от стратегията на Мъск за намаляване на зависимостта от външни производители на чипове, включително Samsung и TSMC.
The Terafab project aligns with U.S. efforts under the CHIPS and Science Act to boost domestic semiconductor manufacturing and reduce reliance on overseas suppliers like TSMC and Samsung.
SpaceX, partnering with Tesla, has filed plans to invest $55 billion in a Texas-based semiconductor facility named Terafab, aiming to secure advanced AI chip supplies in-house. The project could expand to $119 billion over multiple phases and aligns ...
Against this backdrop, Intel’s contract manufacturing business is emerging as a key option for NVIDIA to diversify its production capacity. Intel recently secured contract manufacturing orders from TeraFab and Apple, which the market views as critical milestones in rebuilding external client confidence in its foundry operations, laying the groundwork to attract major clients like NVIDIA.
Against this background, Intel’s foundry business is becoming an important option for NVIDIA to seek diversified capacity. Intel has recently secured foundry orders from TeraFab and Apple, which the market sees as key milestones in restoring external customer confidence in its foundry business, and has also laid a foundation for attracting major clients like NVIDIA.
News of the Terafab coincides with ... the Biden administration, the 2022 CHIPS Act was introduced to strengthen US semiconductor manufacturing and increase global competitiveness in the sector....
As AI chip production demand surges, ... many big tech companies are turning to other foundries like Samsung Electronics and Intel. Recently, Intel joined Tesla’s AI chip production project “TeraFab,” and Samsung Electronics also agreed to produce products for Tesla ...
Among recent announcements, the Terafab semiconductor project in Texas stands out here. By investing tens of billions of US dollars in in-house and partnered chip capacity with Intel, Tesla is tying its AI, robotaxi, Optimus, and data center ambitions directly to secure compute supply.
Nvidia invested $5 billion in Intel in September and is collaborating with the company on custom CPUs for data center systems. Intel is also reportedly working with Elon Musk on a planned manufacturing facility in Texas tied to the Terafab project, which is expected to produce chips for Tesla, xAI, and SpaceX.