Tesla lured Intel veteran to head giant Terafab chip plant - Aroged

Judging by his resume, he has experience in organizing mass production of chips literally from scratch. Tesla, as one of the participants in the joint venture, began actively hiring personnel for Terafab last month. The project itself to build a giant plant for producing chips was announced by Tesla and SpaceX in March.

Tesla AI5 Tape-Out: 5x AI4 Power, Optimus Pivot [2026]

They will not directly compete in most sockets. Tesla and SpaceX jointly announced a $25 billion Terafab project in Austin in March 2026, with Intel joining the consortium in April 2026.

SpaceX IPO fuels more speculation of a merger with Tesla. Here's why.

More critically, the two are teaming up on Terafab, the name Musk gave to the massive development project he says will result in the world’s largest chip manufacturing plant, which is currently aiming for a site near College Station.

SpaceX: Space Compute — Musk's new hype or real future? - Longbridge

These satellites will span up to 70 meters with Avg. power of 120 kW (peak 150 kW), effectively becoming floating power stations in space. 'Starship + in‑house chip fab' as dual engines: From 2028–2031, SpaceX plans two step‑change infrastructure builds: ultra‑high‑frequency heavy‑lift launches via Starship (V3 single‑ship 100 tons to orbit; long‑term goal of 10k units produced and 10k launches per year), and the Terafab chip fab in Texas under SpaceX (2nm process, long‑term output of

SpaceX's Next Big Business Isn't Rockets. It's Computer Chips. | The Motley Fool

The satellite-internet business generates high-margin, recurring revenue and has become the cash engine funding SpaceX's more speculative bets, from Starship to xAI. If space-based compute becomes real, it would slot in as a natural fourth act -- launch lifts the hardware, connectivity moves the data, and Terafab supplies the brains. It is a coherent story. But it is also years away from generating a dollar of chip revenue.

Muskonomy on X: "JUST IN: Elon Musk's Terafab is the largest chip factory in the world and a key part of America's chip comeback, President Trump says Trump said Musk agreed to build Terafab, designed together with Intel's technology team. Terafab is a giant chip plant from Tesla and SpaceX, https://t.co/AkbcElOr2O" / X

Terafab is a giant chip plant from Tesla and SpaceX, acturing partner. Musk announced it in March. Intel joined in April. The goal is to produce 1 terawatt of AI compute every year.

SpaceX - AI Satellite

In sun-synchronous orbit (SSO), AI1 satellites capture continuous solar power with no weather or atmospheric loss, avoiding Earth’s grid, land, and cooling constraints. SpaceX plans to produce advanced AI chips at scale in its new fab facility, a joint project with Tesla using a modular architecture that enables seamless integration and continuous upgrades of next-generation processors. TERAFAB ·