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In response to Truist’s Will Stein, Musk said Tesla’s research fab is expected to be a “$3 billion-ish initiative,” capable of “a few thousand wafers per month,” aimed at trying new manufacturing ideas and validating production processes. He said SpaceX would handle the “initial phase” of a larger-scale “Terafab,” with additional details still being worked out and subject to governance review.
Terafab is expected to eventually target one terawatt of computing capacity annually, a scale that would exceed current US output. However, estimates suggest that achieving this level of capacity could require capital investment ranging from $5 trillion to $13 trillion. Musk’s teams have reportedly initiated discussions with equipment suppliers such as Applied Materials, Tokyo Electron, and Lam Research to source critical chipmaking tools.
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Tesla CEO Elon Musk announced at ... Chipmaking technology for its ambitious Terafab facility, which aims to produce one million wafers per month....
Tesla becomes Intel's first major 14A customer, feeding chips into Musk's Austin Terafab — a lifeline for Intel's foundry ambitions.
SpaceX’s draft IPO filing hints at in-house GPU manufacturing via the Terafab AI chip complex—what it means for investors, partners, and supply risks.
■Correspondent Yoon Kyung-hwan's Trump Stocker <201> Intel Posts Surprise Q1 Results on Rising AI CPU Demand World's First DRAM Maker Built 50-Year Empire Before AI Collapse Trump Administration Takes Largest Stake; SoftBank Also Invests Musk's 'Terafab' Joins In; Ireland Fab Repurchased Shares Surge 124% This Year, Targeting Foundry Rebuild ... Published 2026.04.25. 12:05:05| ... Former Intel CEO Pat Gelsinger. An engineer by training, Gelsinger took the helm in F
Elon stated that they (Tesla) are excited to use the Intel 14A process, calling it "State-of-the-Art". He also acknowledged that 14A isn't complete yet, which is him referring to the fact that 14A isn't viable for mass production at the moment, but by the time TeraFab scales up, the process technology will be in a much more mature state, and that's when TeraFab will be primed to use Intel's bleeding-edge tech to produce Tesla's latest custom silicon.
Why it matters: Terafab joining Prometheus (Meta), Project Rainier (Anthropic/Amazon), and the Cerebras deal (OpenAI) means every major AI player is now building or committing to sovereign compute infrastructure that doesn't depend on renting ...
During Tesla’s recent earnings call, Elon Musk disclosed ambitious plans to develop AI chips using Intel’s forthcoming 14A process, which is still under development. He emphasized Intel’s enthusiasm for partnering with Tesla on this effort, despite the unfinished state of the 14A process. Musk detailed plans for Tesla’s ‘Terafab’ chip production initiative, designed to meet demand for the company’s own AI silicon.
Critically, though, the cost of reusable rockets must fall appreciably for the idea to make economic sense. SpaceX's Starship has brought down the cost of placing payloads in orbit into the realm of possibility, not feasibility. There is enough evidence, including Musk's record, to suggest Terafab may not deliver to timelines drawn for investors.
The catalyst beyond the numbers was Elon Musk’s announcement during Tesla’s Wednesday earnings call that Tesla and SpaceX would use Intel’s forthcoming 14A manufacturing process to produce chips at a new facility Musk is calling “Terafab” — intended to make chips for Tesla vehicles, Tesla robots, and SpaceX’s planned orbital data centres.
Elon explained: “We're still working out the details of the Terafab deployment. "In the near term, Tesla will be building the research fab on our Giga Texas campus.
“We either build the Terafab or we don’t have the chips,” Musk had said during a presentation in Austin in March, adding that current global chip production would meet only a small fraction of his companies’ future needs. The only loser that I can see here is Samsung Foundry. Not long after Samsung and Tesla signed an 8 year $16.5B 2nm wafer agreement Elon Musk announces to the world that not enough 2nm chips can be made?
At the same time, Tesla and SpaceX chose Intel’s upcoming 14A manufacturing process for the Terafab AI chip project, giving Intel a high‑profile external foundry customer just as AI‑related data center demand pushed its Data Center and AI segment revenue higher year over year.
This partnership, which involves companies like Tesla, SpaceX, and xAI, is centered around a project known as TeraFab. While the exact details are still not fully clear, the collaboration appears to focus on Intel’s upcoming 14A chip manufacturing ...
SpaceX’s plan is that 80% of Terafab’s output will power data centers in orbit, not on Earth.
Elon Musk has laid out plans for Terafab, a massive AI chip manufacturing project in Austin intended to support Tesla, SpaceX, and xAI. The project would reportedly involve Intel’s next-generation 14A process and could become a major test of U.S.
Elon Musk announced that a significant part of this massive investment will be transferred to the Terafab chip factory, which will be established in Texas in collaboration with Tesla and SpaceX at a cost of $3 billion.
Intel’s own materials on advanced packaging underline how much of modern compute capability now depends on combining multiple dies within a single package. Performance, bandwidth, thermals, and density increasingly depend on packaging and integration choices rather than on logic scaling alone. That is one reason the repeated pairing of “logic, memory, and packaging” in the Terafab discussion is significant.