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On Sunday, Elon Musk formally made TERAFAB official—a groundbreaking $20-25 billion joint venture uniting Tesla, SpaceX, and xAI, three of the world’s richest man’s most significant and powerful ventures.
Tesla CEO Elon Musk said on Wednesday the EV maker plans to use Intel's next-generation 14A manufacturing process to make chips at its Terafab project, an advanced AI chip complex Musk has envisioned in Austin.
Musk announced on March 21, 2026, that Tesla, SpaceX and xAI will jointly build a new chip-manufacturing facility, Terafab, in Austin, Texas. The Terafab project aims to produce custom silicon tailored to Tesla’s autonomous driving, Robotaxi and Optimus programs, as well as SpaceX’s satellite needs.
The factory is expected to support chip families including edge-inference processors, space-hardened chips for orbital satellites and high-bandwidth memory, according to the job postings. Tesla did not immediately respond to a request for comment. The hiring push comes as demand for AI drives companies to secure more advanced chipmaking capacity, amid constraints at TSMC. When asked about Terafab, TSMC said on Thursday it would not underestimate competitors, but added there are “no shortcuts” in
The annual production target stands at 1 terawatt of computing capacity. This ambitious figure would surpass the aggregate output of most existing global semiconductor manufacturers. Intel announced its participation in the Terafab project last week.
The announcement of Terafab—a joint Tesla-SpaceX semiconductor fab in Austin, Texas, targeting 2 nm process technology—is either the most ambitious vertical integration play in decades or the most expensive negotiating tactic in history.
Elon Musk recently outlined ambitious plans for a chip-building collaboration between his companies Tesla and SpaceX. Bloomberg reports that Musk shared his plans on Saturday night at an event in downtown Austin, Texas, with a photo suggesting that what Musk is calling the “Terafab” facility will be built near Tesla’s Austin headquarters and “gigafactory.”
“Terafab will technically be two fabs, each making only one chip design,” Musk wrote in a post on X. Musk has previously said Tesla would need to build its own AI chip plant, but the involvement of SpaceX had not been disclosed.
Terafab, announced in a painfully awkward conference over the weekend, is a joint semiconductor venture between Musk’s SpaceX, Tesla, and xAI companies.
Tesla, SpaceX, and xAI have jointly built Terafab—a $25 billion 2-nanometer chip manufacturing plant. Chip design, lithography, manufacturing, packaging, and testing will all be completed under one roof.
🚨⚡ What exactly is TERAFAB?In this presentation, Elon Musk lays out one of his biggest industrial visions yet: a joint Tesla + SpaceX + xAI effort to build ...
Elon Musk announced plans to build a Terafab plant in Austin, Texas, that will be jointly run by Tesla and SpaceX.
He supposedly "asked for speedy price estimates while providing minimal information about the products to be made." xAI, others heavily connected to Seaholm Power Plant · Tech giant joining Elon Musk's $20B Terafab project ·
People working on Elon Musk's Terafab project are said to be aggressively tapping suppliers for pricing and delivery times for photomasks, substrates,
The catalyst that defined April came on April 7, when Intel announced it is joining Elon Musk’s Terafab project as primary foundry partner, a $25 billion semiconductor joint venture between Tesla, SpaceX, and xAI targeting one terawatt of AI compute per year at a facility in Austin, Texas.
April 22 (Reuters) - Tesla's Chief Executive Officer Elon Musk said on Wednesday the company plans to use Intel's advanced 14A manufacturing process to make chips at its Terafab project.
The Terafab initiative, announced in March, aims to create an integrated facility capable of producing AI chips from design to packaging. This project is significant as it seeks to ensure complete independence in supply for Musk's ventures, ...
Elon Musk’s lieutenants have reportedly reached out to chip industry suppliers including Applied Materials (AMAT), Tokyo Electron Ltd. and Lam Research Corp. (LRCX) for his envisioned Terafab, early steps in an audacious and likely arduous attempt to break into the production of cutting-edge chips.
Tesla's NASDAQ:TSLA Chief Executive Officer Elon Musk said on Wednesday the company plans to use Intel's NASDAQ:INTC advanced 14A manufacturing process to make chips at its Terafab project.The move marks a breakthrough for Intel, which has been trying to revamp its business to attract outside custo…
Elon Musk is ordering equipment for the Terafab with the capacity to process 3,000 wafers per month. 36,000 wafers per year. 3-4 million chips per year.