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Terafab—a joint venture between Tesla, SpaceX and xAI—would be "the largest chip manufacturing facility ever," producing a combined compute capacity of 1 terawatt annually, according to a post by Tesla on X.
AUSTIN (Austin Business Journal) — Elon Musk announced late Saturday inside the Seaholm Power Plant that his much-anticipated $20 billion Terafab will be built here in Austin. It ends a week of speculation after the billionaire SpaceX and ...
Electric cars, reusable rockets, massive data centers, robots — all considered insanely difficult challenges that his businesses have (at least partially) pulled off. But Musk’s ambitious Terafab chip manufacturing project might end up being ...
Major partnership with SpaceX to establish the TERAFAB, vertically integrating logic, memory, and packaging in one location
The ambition follows work by SpaceX, its xAI unit and Tesla to jointly develop the Terafab, an advanced AI chip manufacturing complex that CEO Elon Musk is planning in Austin, Texas.
Elon Musk is accelerating Terafab, ... SpaceX, and Intel. The Austin-based project aims to vertically integrate chip design and fabrication under one roof to power humanoid robots and orbital AI data centers....
Trevor Smith, founder and CEO of ... data center capacity in orbit, told Data Center Knowledge that space-based data centers don’t have to beat Earth on cost-per-watt – they must win on speed, access, and mission value. Related:Musk’s ‘Terafab’ Proposal Sparks Debate ...
He has proposed a 9-month chip design cycle going forward, which would be roughly half the 12-18 month industry standard for major architectural revisions. Terafab is a joint chip fabrication facility being built in Austin, Texas, by Tesla, SpaceX, and xAI...
The announcement of Tesla's collaboration with Intel to utilize the 14A chip manufacturing process for the Terafab project is a pivotal moment for both companies.
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 ...