SpaceX plans to build its own AI chips through a factory called Terafab, partnering with Tesla and Intel · SpaceX has outlined plans to build AI data centers in orbit, using technology already developed for its Starlink satellite network.
In a separate interview on Monday, SpaceX CFO Bret Johnson said SpaceX's AI data centers would use Nvidia GPUs. The orbital platforms will also eventually use specialized radiation-hardened chips built by Terafab, the massive semiconductor fab ...
As highlighted by Reuters, Intel has already secured Tesla as the first major customer for its next-generation 14A process, which is expected to produce chips for Elon Musk’s planned Terafab AI computing hub in Austin.
ASML is a key supplier of advanced lithography systems used to produce high end semiconductors, which sit at the center of automotive, AI and data center trends. In that context, Musk's interest in a Terafab facility points to demand for cutting edge chip production capacity and closer ties between US tech companies and European equipment providers.
I think over time, there's going to be a lot of technology evolution with the TeraFab. But fundamentally, it's about scale.” Part of SpaceX's AI push The orbital computing initiative forms part of Musk's broader strategy to strengthen SpaceX's position in the artificial intelligence sector. Rather than focusing solely on AI applications, the company is increasingly investing in the infrastructure required to power them, including chips, energy systems and data centres.
SpaceX secured a landmark tax abatement ... hurdle for Terafab — a massive semiconductor manufacturing facility that will produce chips for Starlink satellites, Tesla vehicles, and xAI's orbital data centers....
Tesla and SpaceX’s AI chip factory, “Terafab”, will be massive: ✅ 100 million sq. ft. (9.29 million m²) ✅ 10× larger than Tesla’s Giga Texas ✅ Output of 1 TW of compute per year (roughly 2× current annual U.S. power consumption) https://t.co/qXeKoo5xl4
The company lost ground to TSMC following years of management difficulties and has been working under CEO Lip-Bu Tan to reverse that trajectory. Intel has secured investments from Nvidia and SoftBank, and last month The Wall Street Journal reported that Intel reached a preliminary agreement to make some chips for Apple $AAPL devices. Intel has also secured Tesla $TSLA as a customer for its 14A process node, which will be used to fabricate chips destined for the Terafab ...
They were submitted by TeraFab AI, LLC, a newly formed special-purpose entity created specifically for this project. The applications paint a picture of a project unlike anything Texas has seen before: $119 billion in total proposed investment across four phases · 22,000+ acres spanning two school districts · 4,234 direct jobs created across all eight applications ·
He also said that he would not bet on the SpaceX and Tesla merger. I believe that could happen, but it is years out with 2027 at the earliest. TeraFab division could also be a huge game, and I am not even going to talk that much about TeraFab today.
Meanwhile, Musk disclosed another "Terafab" chip factory, co-developed by SpaceX, Tesla, and xAI, covering an area of 100 million square feet—approximately 10 times the size of Tesla's ( TSLA) Austin Gigafactory.
But the Gigasat is just a stepping stone. Elon described a longer-term facility called TERAFAB, projected at roughly 100 million square feet — approximately ten times the size of Giga Texas.
Tesla CEO Elon Musk said in April that the company plans to use Intel’s next-generation 14A manufacturing process to produce chips for its “Terafab” project, an advanced AI chip facility envisioned in Austin.
Elon Musk also detailed Terafab — a ~100 million sq ft manufacturing facility projected to be 10× the size of Giga Texas — targeting a staggering 1 TW/year output, double current total U.S.
(NASDAQ: SMCI) bounced 5.64% to $43.99 after falling more than 11% on Friday. The recovery tracked comments from Nvidia Corp. (NASDAQ: NVDA) CEO Jensen Huang, who reiterated that the semiconductor supply crunch is likely to persist for several years as AI infrastructure build-out demand continues to run ahead of capacity.
Elon Musk says @SpaceX's Terafab will be around 100 million square feet, which is 10x larger than Tesla's Giga Texas factory. • Terafab output: 1TW/year • Current annual U.S. consumption: 0.5TW
Tesla CEO Elon Musk said in April that the electric vehicle maker plans to use Intel's next-generation 14A manufacturing process for chips at its Terafab advanced AI chip complex in Austin [2]. SK Hynix, the leading maker of high-bandwidth memory, is separately testing whether its HBM products work reliably with Intel's packaging technology — a secondary validation that strengthens Intel's credibility as a full-service foundry [3].
The news is "evidence that AI's biggest players are racing to diversify a supply chain still heavily concentrated in TSMC," said Jacob Bourne, technology analyst at eMarketer. Since Tan took charge, Intel has secured billions of dollars of investments from the Trump administration, Nvidia and SoftBank. It also landed Tesla as the first major customer for its next-generation 14A manufacturing process to make chips for Elon Musk's Terafab project, an advanced AI chip complex
Terafab represents a collaborative effort between SpaceX and Tesla, first announced in March 2026. The ambitious undertaking seeks to establish a semiconductor manufacturing facility on American soil with a budget exceeding $55 billion.
Tesla CEO Elon Musk said in April that Tesla plans to use Intel’s 14A manufacturing process to make chips for its Terafab project, an advanced AI chip facility planned for Austin.