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Shotwell didn’t elaborate on the specific synergies that exist between Tesla and SpaceX, but the two companies are already collaborating in some areas, including jointly running Musk’s planned $55 billion “Terafab” facility, which will produce chips for robotics and space travel.
And SpaceX is partnering with Tesla to build the chipmaking facility that could be located in Grimes County. Terafab, as the project is called, would make chips for electric vehicles, humanoid robots and space-based data centers.
The addition of Terafab, a chip manufacturing initiative with Tesla and Intel, aims to further extend our vertical integration to chip design and manufacturing to alleviate potential future chip shortages at SpaceX, optimize compute performance, ...
And SpaceX is partnering with Tesla to build the chipmaking facility that could be located in Grimes County. Terafab, as the project is called, would make chips for electric vehicles, humanoid robots and space-based data centers.
ASML is the world's only manufacturer of extreme ultraviolet (EUV) lithography machines, with each unit costing up to $400 million. This April, ASML CEO Christophe Fouquet confirmed that he had held direct talks with Elon Musk regarding the Terafab project, stating that Musk is "very serious about the project."
All that before Terafab — the hundreds-of-billions chip adventure with Intel to go after TSMC — and AI data centers in space, where it’s cold and the sunlight is eternal, but much of the science has to be invented: the best professional analysis says 10 to 15 years at least, not the 3 to 5 talked about around this offering, against Elon’s outlined $29 trillion market opportunity.
The two companies are also co-investors in "Terafab," a joint facility with Intel for manufacturing AI microchips, with a first-phase cost estimated at $55 billion. In other words, the operational and financial overlap between Tesla and SpaceX ...
The estimates of how much it would cost to build his Terafab facility range between $55 billion to $119 billion. And not much is known about the cost to build what he says will be 1 million Starlink-mounted space-based data centers, which some say could require as many as 70 million – 100 million AI chips (to bypass the latency of earth-to-orbit transmission).
Elon Musk's Terafab tapped Intel ... flow back to Taiwan's ecosystem. Jensen Huang called Taiwan 'the epicenter of the AI revolution' as Nvidia targets $150B per year in Taiwanese investments, a 10-fold increase since ...
BofA pointed to potential opportunities tied to Apple M-Series wafers, MediaTek TPU wafers, advanced packaging, Terafab engagements, and other ARM-based server CPU work.
The company's AI division, xAI, launched in 2023 and later became part of SpaceX in early 2026. Since then, it has significantly expanded its computing infrastructure, including the development of large-scale computing clusters known as COLOSSUS and COLOSSUS II. SpaceX is also pursuing the Terafab initiative, a semiconductor manufacturing project reportedly being developed in collaboration with Tesla and Intel...
The companies already share deep operational ties, including SpaceX’s $697 million in Tesla Megapack purchases and joint planning for the Terafab semiconductor facility to support AI infrastructure. With SpaceX’s anticipated June 2026 listing expected to value it near $1.75 trillion, analysts such as Wedbush’s Dan Ives see 80%+ odds of a post-IPO merger in 2027 driven by AI synergies and Musk’s control.
This is important because SpaceX can’t supply its own chips for the satellites. Why? Because SpaceX doesn’t make chips… yet. Musk has planned for this situation, however, with the construction of Terafab in Texas, where SpaceX and Tesla (TSLA) – with plenty of help from American chip giant Intel (INTC) – will make their own chips.
Elon was expected to speak to ASML employees, the only company in the world to manufacture extreme ultraviolet lithography (EUV) machines, about his Terafab project, announced in March 2026 as a collaboration between xAI, Tesla and SpaceX.
The two companies have shared employees ... collaborating on a $55 billion "Terafab" chip-making moonshot that will build semiconductors for SpaceX's AI satellites, as well as Tesla's robotaxis and humanoid robots....
With xAI comes the Grok large language model and X, formerly known as Twitter. And to entice developers, the company struck a deal with AI coding upstart Cursor, with an option to buy the business for $60 billion in stock. Then there's the Terafab semiconductor fab and computing mega project that it's jointly developing with Tesla.
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Elon Musk announced Terafab, a proposed chip manufacturing campus in Austin to produce semiconductors for Tesla and SpaceX, aiming for massive terrestrial and orbital compute capacity.
The proposed Terafab is expected to manufacture both logic and memory chips all in the same facility. Initially, the goal is to produce logic chips at the sub-2nm node. And if that isn’t enough, the same facility will also package and test these chips.
Elon Musk, known for his audacious ... This project, informally dubbed a “Terafab,” aims to establish a dedicated semiconductor fabrication plant for his own companies....