SpaceX Daily News: Special Bonus – Terafab | July 6, 2026
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Special bonus deep-dive on Terafab, Elon Musk's audacious chip mega-fab. Terafab just secured its Texas home: on June 3, Grimes County approved a full property-tax abatement to bring the full-scale plant to the former Gibbons Creek reservoir site, with SpaceX set to build and operate it and a prototype fab running first in Austin near Tesla's Gigafactory. Announced by Musk in March, the vertically integrated facility folds chip design, lithography, memory, packaging and testing under one roof, targeting more than one terawatt of AI compute capacity per year. A May filing puts the investment at about $55 billion initially and up to $119 billion across all phases. It's a joint Tesla, SpaceX and Intel venture, running on Intel's 14A (1.4nm) process, with Tesla as Intel 14A's first major customer. Facts sourced from public filings and launch reports.
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Kind: captions Language: en We have breaking news today on SpaceX Daily News where we cover the latest news on SpaceX, Tesla, and all of Musk Industries. This bonus edition goes deep on Terraab, Elon Musk's audacious chip meap. The project just locked in its Texas home. On June 3rd, Grimes County approved a full property tax abatement to bring the full-scale plant to the old Gibbons Creek reservoir site with SpaceX set to build and operate it. A prototype fab runs first in Austin, right next to Tesla's Gigafactory. So, what is Terraab? Announced by Musk in March, it's a vertically integrated megaactory that folds chip design, lithography, memory, packaging, and testing under one roof. The goal is staggering. More than 1 terowatt of AI compute capacity every single year. The price tag matches the ambition. A May filing pegs the initial investment at $55 billion and up to 119 billion across all phases. That would make Terraab one of the most expensive factories ever attempted on American soil. And it's a team effort. Terraab is a Tesla, SpaceX, and Intel venture. The full-scale plant will run on Intel's 14A or 1.4 nanometer process, making Tesla its first major customer. Tesla leads the prototype while SpaceX takes the lead on the full-scale build. >> Subscribe to SpaceX Daily News for a new brief every day.