Key milestones in the Terafab project's development
On Tesla's Q1 2026 earnings call, Elon Musk announced Terafab will standardize on Intel's 14A manufacturing process, calling it a strong fit because 14A should be mature by the time Terafab scales. Terafab is reported to be the first major external customer for the node. SpaceX is expected to handle high-volume manufacturing aspects, potentially via a technology licensing deal.
Tesla broke ground on the Terafab site at the North Campus of Giga Texas, marking the official start of physical construction.
Tesla and SpaceX staff aggressively contact major chip equipment suppliers — Applied Materials, Tokyo Electron, Lam Research, and Samsung — seeking quotes, delivery timelines, and priority access for etchers, photomasks, and substrates. Reports describe the push as moving at 'light speed,' with premiums offered for accelerated delivery.
Tesla posted job openings in Taiwan targeting experienced semiconductor engineers (5+ years in advanced processes) to support a 'vertically integrated semiconductor factory' combining logic, memory, packaging, test, and lithography mask production.
Intel officially joined the Terafab project alongside Tesla, SpaceX, and xAI, stating it is 'proud to join' to help 'refactor silicon fab technology' and accelerate the 1 TW/year compute target. Intel becomes a key partner for design, fabrication, and advanced packaging.
Details emerge confirming Austin, Texas as the site for the Terafab facility. The project will be jointly run by Tesla and SpaceX, with xAI as a partner.
Elon Musk announces Terafab at the Seaholm Power Plant in Austin, Texas. The project is revealed as a joint venture between Tesla, SpaceX, and xAI with a $20–25 billion investment targeting one terawatt of annual compute.