Elon Musk introduced Terafab, a project aiming to produce 1 terawatt of AI computing power annually, marking a shift toward orbital AI infrastructure. Intel joined as a key manufacturing partner, boosting its stock significantly.
On March 21, 2026, at the Seaholm ... exercise in history": Terafab, a joint venture between Tesla (NASDAQ:TSLA), SpaceX, and xAI, with Intel (NASDAQ:INTC) as foundational manufacturing partner....
Residents appeared before the Grimes County Commissioners Court on May 13 to urge commissioners to provide transparency and negotiating power amid a potential $55 billion investment from SpaceX.
A Terafab chip complex in Texas involving Tesla and SpaceX could require at least $55 billion in investment, with some estimates climbing as high as $119 billion depending on future development phases, WSJ noted. The company is simultaneously investing heavily in launchpads, satellite manufacturing, solar-cell production and low-Earth-orbit infrastructure.
Positive Sentiment: Tesla is doubling down on its AI and autonomy narrative, with reports of a Terafab chip venture tied to Tesla, SpaceX, and xAI, plus growing investor enthusiasm around Optimus, robotaxis, and self-driving approvals in Europe.
Intel's long-term thesis hinges on two things it has yet to demonstrate at scale: achieving economic yields with its 18A manufacturing process and signing external customers on to its upcoming 14A node. Helping the bull case for Intel, Nvidia made a $5 billion investment in Intel last year, and Intel recently joined Elon Musk's Terafab project to manufacture chips for Tesla, SpaceX, and xAI.
Terafab and its partner industries, according to the PERC report, would mark a major shift from an agriculture-focused economy in Grimes County to a focus on technology and manufacturing.
While the public notice about the potential tax abatements does not mention Terafab — a $20-plus billion joint venture of Musk’s Tesla Inc., xAI and SpaceX — by name, it describes the project as a "multi-phase, next-generation, vertically integrated semiconductor manufacturing and advanced computing fabrication facility, which would represent a transformative investment in domestic semiconductor manufacturing capacity."
Commercial Property Executive reports the proposed “Terafab” facility could rise near College Station in Grimes County, roughly midway between Houston and Austin, according to reporting from the Houston Chronicle.
According to reports at the time, Terafab is designed to produce chips for Tesla vehicles, Optimus robots, and high-powered space computing applications — targeting 1 trillion watts of computing power per year.
Robotaxi service performance: In ... scheduled. Terafab chip gamble: Tesla is investing $119 billion in Austin-based chip factories to secure AI hardware for Optimus, EVs, and SpaceX data centers....
The SK Hynix packaging test as an example of the possibility that Intel EMIB can compete with TSMC CoWoS in the fast growing AI accelerator packaging sector. Add Tesla Terafab 14A win, Google Cloud CPU deal, CHIPS Act stake and six straight ...
Recognising the challenges faced by semiconductor supply chains, SpaceX recently announced that it will be building a $55 billion semiconductor manufacturing and advanced computing facility called Terafab.
In March 2026, Tesla and SpaceX unveiled plans for a chip manufacturing facility called Terafab, targeting leading-edge 2-nanometer (nm) chips and designed to ultimately support up to one terawatt of compute capacity annually, according to TheStreet.
Excerpted with edits: https://itif.org/publications/2026/04/20/explaining-the-relative-competitive-decline-of-americas-automotive-industry/ Intel shares rose 114.1% in April 2026. Why? Market analysts argue: 1) Intel’s Foundry-branded chip manufacturing services scored a couple of wins. The unit signed a long-term partnership with Tesla making Intel a founding partner of the upcoming Terafab chip-making facility (although details were vague).
Elon Musk’s Terafab project will use Intel’s design, manufacturing, and packaging expertise for AI chips serving Tesla’s (TSLA) robotics program and xAI’s data centers. Terafab is Musk’s initiative to build a domestically sourced AI compute stack, from chip design through data center deployment, reducing dependency on TSMC and Nvidia.
Total investment in the mega semiconductor plant 'Terafab' that Elon Musk (일론 머스크) is pursuing in eastern Texas could reach as much as $119 billion (about 172.43 trillion won), it has been found.
To realize the vision of orbital data centers, SpaceX submitted a license application in February to launch as many as 1 million satellites to serve as data centers. SpaceX has also partnered with Tesla (TSLA) to launch the chip manufacturing project Terafab, aiming to achieve self-sufficiency in chip production and reduce costs.
Elon Musk Builds $119B "Terafab Sillicon Valley" Outchip Industry!Elon Musk Terafab could become one of the largest AI chip manufacturing projects ever propo...