Inside Elon Musk's $119B Terafab — What You Must Know

What happens when one of the world’s most ambitious technology companies decides it needs to build its own chips?

Elon Musk’s answer is Terafab — an extraordinary semiconductor project planned in Texas that could eventually represent up to $119 billion in potential investment.

The project is designed to address a problem at the heart of Tesla, SpaceX and xAI: the enormous demand for advanced computing hardware.

From AI systems and humanoid robots to autonomous vehicles and future space-based data centers, Musk’s companies are increasingly dependent on powerful chips. Terafab is his attempt to bring more of that supply chain under one roof.

The plans are ambitious: more than 100 million square feet of planned manufacturing space, advanced logic and memory production, packaging and testing, and a long-term target of producing chips representing more than one terawatt of computing capacity per year.

But behind the enormous numbers are enormous challenges.

Can Musk build and operate