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Elon Musk's SpaceX (SPAX.PVT) has filed plans to invest $55 billion into building a Terafab facility in Texas, which will allow the company to produce in-house chips for its AI and robotics projects.
This manufacturing plant is actually an advanced chip-packaging plant for Starlink’s RF semiconductors, as opposed to the TeraFab, which will manufacture the semiconductors.
TERAFAB: Elon Musk plans chip fabrication plant in Austin as he pushes toward space-based data centers · The facility "would represent a transformative investment in domestic semiconductor manufacturing capacity," according to the Grimes County public hearing announcement.
The chip complex outside Austin would be designed to manufacture chips for SpaceX, xAI and Tesla, and would be jointly built by those companies. Musk said in a post on X that xAI "will be dissolved as a separate company" and will be called SpaceXAI. In April, Intel announced it will be joining the Terafab project to help "design, fabricate, and package ultra-high-performance chips at scale."
SpaceX submitted a public filing to construct a semiconductor manufacturing facility in Grimes County, Texas, Reuters reported Wednesday. It's the latest step forward for Musk’s new multibillion-dollar project, dubbed Terafab, which seeks ...
Musk planned to start this work with an advanced technology fabrication plant at the Tesla Gigafactory Texas campus in Austin. The full-scale Terafab would need a larger site – and two separate facilities – to make different kinds of chips: one designed for Tesla’s electric vehicles and Optimus humanoid robot and another made to withstand the rigors of space.
In addition to silicon used for compute, Musk claims Terafab will have all the equipment necessary to produce chips of any kind, and that includes memory. “In a single building, we can create a lithography mask, make the chip, test the chip, make another mask, and have an incredibly fast recursive loop for improving the chip design,” Musk boasted in a March presentation.
Terafab represents a strategic masterstroke for American technological leadership. By localizing cutting edge semiconductor production in Texas, the project will generate thousands of high skilled jobs, stimulate regional economic growth, and bolster supply chain resilience amid global uncertainties.
Earlier this year, SpaceX solidified ... trillion. Terafab is central to this integrated strategy, expected to provide chips for Tesla's autonomous driving systems, humanoid robots, and large-scale AI data centers....
Musk has previously outlined plans for the project, dubbed “Terafab,” that will also see Tesla contributing resources. The companies have roped chipmaking giant Intel into the effort, aiming to develop chips for AI servers, satellites, SpaceX’s proposed data center in space, as well as autonomous Tesla vehicles and robots.
SpaceX proposes Terafab, a $55–119 billion vertically integrated semiconductor plant in Grimes County, Texas, to supply chips for xAI, Tesla, satellites and a planned space data center.
Musk has previously outlined plans for the project, dubbed “Terafab,” that will also see Tesla contributing resources. The companies have roped chipmaking giant Intel into the effort, aiming to develop chips for AI servers, satellites, SpaceX’s proposed data center in space, as well as ...
The Terafab project will be a multi-phase chip fabrication and the cutting-edge computing complex, aiming to boost domestic semiconductor production across the US. SpaceX estimates total investment is likely to increase $119 billion after completing ...
In less terrestrial news, xAI said that as part of the agreement, Anthropic “expressed interest in partnering to develop multiple gigawatts of orbital AI compute capacity.” ... The initial phase of SpaceX and Tesla’s joint chip production effort, called Terafab, could cost $55 billion, with additional phases adding up to $119 billion in capital investment, Reuters reports, citing a notice posted on a Texas county website.
Elon Musk's SpaceX, in collaboration with Tesla, unveils plans for a $55 billion semiconductor manufacturing facility in Texas aimed at enhancing domestic chip production and securing supply chains amid rising geopolitical tensions.
News release from the Greater Brazos Partnership: Following the announcement of the potential SpaceX Terafab semiconductor facility in Grimes County, the Greater Brazos Partnership has conducted a strategic economic analysis detailing the transformational benefits the project will bring to the regional economy.
Terafab targets two primary chip types: an edge-inference processor optimized for Tesla's Full Self-Driving systems, Optimus humanoid robots, and Robotaxi fleets, and a high-power variant hardened for space environments, supporting SpaceX satellites, orbital data centers, and xAI initiatives.
On June 3, county commissioners are expected to consider a property tax abatement agreement for the facility, which the notice says has an estimated capital investment of $55 billion for the initial phase, and a total capital investment of $119 billion if additional phases are constructed. The notice represents the first indication of a possible site for Musk's plans for SpaceX and Tesla to build the world's largest chip manufacturing plant.
SpaceX’s $55B Terafab chip plant in Austin could hit $119B total, boosting AI and space chip supply—and sparking merger talk with Tesla.
The Terafab joint venture with Tesla Inc. (NASDAQ:TSLA) would aim to produce next-generation chips using Intel Corp.’s (NASDAQ:INTC) 14A process, ultimately reducing his companies’ reliance on Nvidia Corp.