➞ MetaCritic Capital: “The fundamental problem between Dwarkesh and Jensen is that Jensen doesn’t believe in AGI. Which is insane, but that’s still his underlying assumption”... Grace Kay: Cursor plans to use xAI's infrastructure to train its Composer 2.5 coding model, according to people familiar with the matter · Anthropic releases Claude Opus 4.7, “our most capable Opus model yet” · Bloomberg: Elon Musk’s lieutenants have reached out to chip industry suppliers for his envisioned Terafab
On March 21–22, 2026, Elon Musk announced something extraordinary: Tesla, in partnership with SpaceX and Musk’s AI venture xAI, is launching Terafab — a massive semiconductor fabrication project in Austin, Texas.
The first plant is set to manufacture chips for automotive and humanoid robotics, while the second will focus on chips designed for AI data centers located in space. Musk stated that the need for significantly higher chip production capacity for his companies necessitated the creation of Terafab. Goal: To manufacture chips equal to one terawatt of computing capacity annually.
The semiconductor giant is joining Elon Musk's ambitious terrafab project, billed as the largest ever chip manufacturing facility, one that will power space travel and advanced robotics.
Musk said his Terafab project — a grand plan to eventually manufacture his own chips for robotics, artificial intelligence and space data centers — will be built in Austin.
Glass substrates offer superior thermal stability and exceptional dielectric properties. They also allow for higher chiplet integration which is essential for the D3 processor architectures. Intel is the industry pioneer in glass substrates for advanced packaging. This makes Intel the logical foundry partner for the TERAFAB space challenge.
Terafab’s facility, which is likely to exceed 100 million sq ft, or roughly the size of 1,350 soccer fields, will integrate chip manufacturing for cars, robots and orbital satellites.
Elon Musk's ambitious Terafab AI chip project is making waves in the industry. According to a report from Bloomberg News, Musk's team has reached out to suppliers in the chip industry for support. The outreach includes major companies such as Applied Materials, Tokyo Electron, and Lam Research. They have asked for assistance from chip manufacturing giant Samsung Electronics Co, seeking price quotes and delivery times for various chipmaking equipment.
The war in the Middle East is threatening to disrupt the supply of production materials for semiconductors such as helium and hydrogen, but TSMC said it had safety stock on hand and sources from multiple suppliers in different regions. The potential for greater competition has grown after Elon Musk last month announced plans for Tesla to build a “Terafab”, an advanced AI chip complex in Austin.
EUV lithography tool supply remains limited globally, and the U.S. semiconductor ecosystem faces acute shortages of experienced process engineers, technicians, and yield specialists. Tom's Hardware analyst Anton Shilov has argued that these constraints are the binding limit. Money can accelerate construction; it cannot instantly create a workforce with decades of process experience, nor expand ASML's EUV production queue. Terafab is unlikely to be in its fully articulated form — 1 tera
A few days after Elon Musk teased the official launch of the "Terafab" project, Tesla began recruiting the specialized talent required to build a semiconductor factory from the ground up. The hiring push was first noted by X user @TeslaRyanRogue, who pointed to a new listing for a Technical Program Manager in Infrastru
Just days after Elon Musk teased ... X user @TeslaRyanRogue, who highlighted a new job listing for a Technical Program Manager in Infrastructure Semiconductors based in Austin, Texas....
Tesla has begun to hire personnel for its upcoming semiconductor production facility operation, tentatively known as Terafab, as noticed by Sawyer Merritt.
Yet Musk may settle for more modest accomplishments in the chip industry, given the extreme costs and complexity. Hamburg-based Berenberg has yet to include Terafab into its financial models for ASML, whose High NA EUV equipment would likely be used in such an endeavor, Tammy Qiu, the bank’s head of tech equity research, said on Bloomberg Tech.
That specific shrinking process requires ASML's most advanced, heavily backlogged EUV machinery. GaN operates under a different set of physical rules. It can handle significantly higher voltages, temperatures, and frequencies than silicon. Because of these inherent material advantages, highly efficient GaN chiplets can be manufactured on slightly more mature nodes using widely available Deep Ultraviolet (DUV) lithography equipment. By leaning heavily into GaN architectures, TERAFAB can side
Semiconductors Elon Musk pushing forward with Terafab at 'light speed' ... Cloud Storage Backblaze silently redefines 'unlimited' backups and users discover it's not backing up Dropbox and OneDrive · Semiconductors US lawmakers amend new restrictions on Chinese chipmakers — MATCH Act's blanket restrictions removed from select chipmaking tools ... Im not saying Jensen is wrong.
The financial scale of this chip endeavor is colossal. Tied to AI5 is the “Terafab” semiconductor plant project in Austin, announced by Tesla and SpaceX in March 2026 with Intel joining as a manufacturing partner in April.
The tape-out for the new AI5 chip was completed on April 15, with mass production expected in 2027. Concurrently, Tesla is constructing the so-called “Terafab” chip plant in Austin, a project representing a vertical integration push.
The Terafab project is a ... AI needs and SpaceX's space-based data centers. In 2026, Wall Street analyst Dan Ives predicted the Tesla-SpaceX merger will occur in 2027....