On March 21, 2026, SpaceX announced the project to build Terafab, a joint project with Tesla and xAI, to build a large semiconductor fabrication project centering on the construction of a vertically integrated “mega-fab” designed to produce ...
It's not very surprising: Tesla has announced massive AI spending projects, including Terafab, a joint venture with SpaceX and xAI aimed at building more semiconductor chips.
The company typically values vertical integration and prefers to do all of its development in-house, even going so far as to launch its own AI chip manufacturing plans via the TERAFAB project. To date, Tesla has acquired only roughly 10 companies in its entire history, usually focusing on battery tech or manufacturing automation. This mystery company must possess unique intellectual property that Tesla and its current partners cannot provide. This is particularly notable given that Tesla already
Intel CEO says he can 'think of no better partner than Elon Musk' to explore 'unconventional' ways to improve chip manufacturing — TeraFab partnership aims to rethink how chips are made to reduce costs ... From Earlier But Significant | Tesla, LG Energy Solution, and KULR Signal New Momentum in Battery Innovation ... Intel Wins U.S. SHIELD Contract to Supply Chips & Advanced Packaging Under $151 Billion Defense Program, Leveraging Its Domestic Fab Capabilities
At the heart of this transformation is the company’s “Terafab” semiconductor project, humanoid robots, autonomous robotaxis, and tight collaboration with SpaceX on custom chips and space‑based systems.
Elon Musk recently announced plans for a $25 billion Terafab chip factory. MarketWise has also reported that the upcoming SpaceX IPO may introduce tough terms for shareholders. This material may contain third-party opinions, none of the data ...
At the heart of this transformation is the company’s “Terafab” semiconductor project, humanoid robots, autonomous robotaxis, and tight collaboration with SpaceX on custom chips and space‑based systems.
In response to Truist’s Will Stein, Musk said Tesla’s research fab is expected to be a “$3 billion-ish initiative,” capable of “a few thousand wafers per month,” aimed at trying new manufacturing ideas and validating production processes. He said SpaceX would handle the “initial phase” of a larger-scale “Terafab,” with additional details still being worked out and subject to governance review.
Terafab is expected to eventually target one terawatt of computing capacity annually, a scale that would exceed current US output. However, estimates suggest that achieving this level of capacity could require capital investment ranging from $5 trillion to $13 trillion. Musk’s teams have reportedly initiated discussions with equipment suppliers such as Applied Materials, Tokyo Electron, and Lam Research to source critical chipmaking tools.
■Correspondent Yoon Kyung-hwan's Trump Stocker <201> Intel Posts Surprise Q1 Results on Rising AI CPU Demand World's First DRAM Maker Built 50-Year Empire Before AI Collapse Trump Administration Takes Largest Stake; SoftBank Also Invests Musk's 'Terafab' Joins In; Ireland Fab Repurchased Shares Surge 124% This Year, Targeting Foundry Rebuild ... Published 2026.04.25. 12:05:05| ... Former Intel CEO Pat Gelsinger. An engineer by training, Gelsinger took the helm in F
Elon stated that they (Tesla) are excited to use the Intel 14A process, calling it "State-of-the-Art". He also acknowledged that 14A isn't complete yet, which is him referring to the fact that 14A isn't viable for mass production at the moment, but by the time TeraFab scales up, the process technology will be in a much more mature state, and that's when TeraFab will be primed to use Intel's bleeding-edge tech to produce Tesla's latest custom silicon.
Why it matters: Terafab joining Prometheus (Meta), Project Rainier (Anthropic/Amazon), and the Cerebras deal (OpenAI) means every major AI player is now building or committing to sovereign compute infrastructure that doesn't depend on renting ...
During Tesla’s recent earnings call, Elon Musk disclosed ambitious plans to develop AI chips using Intel’s forthcoming 14A process, which is still under development. He emphasized Intel’s enthusiasm for partnering with Tesla on this effort, despite the unfinished state of the 14A process. Musk detailed plans for Tesla’s ‘Terafab’ chip production initiative, designed to meet demand for the company’s own AI silicon.
Critically, though, the cost of reusable rockets must fall appreciably for the idea to make economic sense. SpaceX's Starship has brought down the cost of placing payloads in orbit into the realm of possibility, not feasibility. There is enough evidence, including Musk's record, to suggest Terafab may not deliver to timelines drawn for investors.
The catalyst beyond the numbers was Elon Musk’s announcement during Tesla’s Wednesday earnings call that Tesla and SpaceX would use Intel’s forthcoming 14A manufacturing process to produce chips at a new facility Musk is calling “Terafab” — intended to make chips for Tesla vehicles, Tesla robots, and SpaceX’s planned orbital data centres.