Why It Matters: Terafab is the $20–25B joint chip fabrication facility backed by Tesla, SpaceX, xAI, and Intel — designed to produce AI chips for FSD, Cybercab, Optimus, and beyond.
The joint SpaceX-Tesla plant could eventually balloon into a $119 billion facility, the filing said. ... Elon Musk’s SpaceX (SPAX.PVT) rocket company filed paperwork to build its upcoming Terafab chip fabrication plant, with an initial spend of $55 billion...
The county’s commissioners court is scheduled to hold a June 3 public hearing to consider a property tax abatement agreement tied to the project. The Chronicle reported that Musk has described Terafab as a complex designed to support Tesla, SpaceX and xAI, with chipmaking capacity ultimately aimed at those companies’ automotive, AI and space-related needs.
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.
SpaceX (SPACE) plans an initial investment of $55B for the ambitious Terafab project, which, if it comes to fruition, should prove beneficial for Intel (INTC) as well as several semiconductor manufacturing equipment vendors, such as ASML (
Terafab vertically integrates chip design and fabrication, compressing hardware iteration cycles from months to days and reducing external supply constraints, directly supporting FSD, Robotaxi, and AI initiatives.
It's the same as musk's other companies where they're posting fake jobs to juice the stock price. There's no '<strong>terafab</strong>' so there is no process engineer jo
Giga Texas already sits on 2,500 acres with over 10 million square feet of existing factory floor, and the North Campus expansion is being built to support multiple projects, including the dedicated Optimus factory, the Terafab chip fabrication facility (a joint Tesla/SpaceX/xAI venture), a Cybercab test track, road infrastructure, and supporting facilities.
Tesla plans to invest $25 billion in 2025, nearly tripling last year's spending, with Q1 operating profit up 136% to $941 million, and picks Intel's 14A process for its Terafab AI chip project.
On Wednesday, Tesla also raised its 2026 capital-spending plan to more than $25 billion from $20 billion, with Musk saying the higher outlay was needed to support future revenue streams.
Tesla expects a massive $25 billion in capital expenditures for 2026. This will fund six factories, AI research and development, infrastructure, TERAFAB, and solar manufacturing equipment
Billionaire Elon Musk said Wednesday he plans to use Intel’s forthcoming 14A production technology to make chips in his “Terafab” project for artificial intelligence, self-driving cars and spaceflight.
Tesla’s recent performance reflects a 19% rebound in stock value over the past month, despite a year-to-date decline. A reported SpaceX–Tesla Terafab plan, which proposes a vertically integrated chip and computing plant targeting 2nm chips with a potential investment of $55–119 billion, ...