As first reported by Reuters, the company filed paperwork with Grimes County, Texas, disclosing the spend, which could eventually balloon to $119 billion if all additional phases are built.
SpaceX plans a $55 billion Terafab chip facility in Texas. The project will boost semiconductor production and support AI stocks growth. Significant economic impact expected with job creation and regional development.
22, 2026, 5:21 p.m. ... "We have a great relationship with Intel," Elon Musk said Wednesday. "A lot of respect for the CEO, the CTO and the new team there."Sean Meagher/The Oregonian ... Billionaire Elon Musk said Wednesday he plans to use Intel’s forthcoming 14A production technology to make chips in his “Terafab” project for artificial intelligence, self-driving cars and spaceflight.
Why It Matters: Terafab is the $20–25B joint chip fabrication facility backed by Tesla, SpaceX, xAI, and Intel — designed to produce AI chips for FSD, Cybercab, Optimus, and beyond.
The Terafab initiative aims to establish a fully integrated manufacturing model that combines semiconductor fabrication with advanced computing infrastructure. According to documents reviewed by Reuters, the chips produced at the facility are ...
The company is also launching Terafab, an internal semiconductor foundry developed with support from Intel. These projects aim to support Tesla's commercial vehicle, robotics, and autonomous transport ambitions.
Tesla recently reported a sharp rebound in China-made Model 3 and Model Y sales in April, alongside securing its largest-ever Tesla Semi truck order and unveiling a multibillion‑dollar Terafab chip manufacturing initiative with SpaceX and xAI. Together, these developments highlight how Tesla is tying core EV demand, AI chip capacity and commercial trucking into a broader physical‑AI platform spanning vehicles, energy and robotics.
The Terafab project would involve a multi-phase chip fabrication and advanced computing complex aimed at boosting domestic semiconductor production in the United States. SpaceX estimates total investment could rise to US$119 billion if additional ...
The increase is raising new concerns ... to expand. In March, Musk announced Terafab, a proposed $20-25 billion semiconductor fabrication plant near Giga Texas, also known as the Gigafactory, in eastern Travis County....
Tesla expects a massive $25 billion in capital expenditures for 2026. This will fund six factories, AI research and development, infrastructure, TERAFAB, and solar manufacturing equipment
(We will have to revisit this claim if Musk’s Terafab comes to fruition.) And Jensen’s explanation for why even that data point exists is more candid than I expected: Nvidia could not make the multi-billion dollar equity investment that Anthropic needed to underwrite its compute commitment, AWS and Google could, and so the offtake followed the capital.
The increase is raising new concerns ... to expand. In March, Musk announced Terafab, a proposed $20-25 billion semiconductor fabrication plant near Giga Texas, also known as the Gigafactory, in eastern Travis County....
The TERAFAB initiative outlines an ambitious future where massive amounts of compute are shifted directly into orbit. These space-based datacenters, deployed alongside the ever-expanding Starlink satellite constellation, possess an absolute ...
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