TeraFab: The Biggest Chip-Building Exercise in History | by Aaron Smet | Jun, 2026 | Medium

The company designs its own Full Self-Driving chips, develops custom AI accelerators, manufactures batteries, builds electric motors, and writes much of its own software. SpaceX follows a similar philosophy, manufacturing rockets, engines, avionics, satellites, and launch systems internally whenever possible. TeraFab extends this philosophy into semiconductor manufacturing itself.

Tesla & SpaceX Terafab Chip Plant Rising at Giga Texas

Radiation-hardened space chips — high-reliability processors for SpaceX satellites, orbital data centers, and deep-space missions · That dual mandate is what makes Terafab unusual. Most chip fabs specialize in one process node or market segment.

Elon Musk announces plans to build Terafab, the world's largest chip factory | Mashable

At full capacity, it will produce an annual 100 to 200 gigawatts of computing power on Earth, as well as 1 terawatt of computing power in Space (this means that the chips produced at Terafab will ultimately draw that much power when deployed). For reference, Musk said that the U.S. electricity demand is 0.5 terawatts. This is why, Musk argued, 80% of Terafab's compute output will actually reside in space, on SpaceX's solar-powered AI satellites.

Terafab - Wikipedia

Terafab is a planned semiconductor fabrication plant jointly developed by Tesla, SpaceX, and Intel. The venture was announced by Elon Musk on March 21, 2026 and centers on the construction of a vertically integrated large-scale facility designed to produce more than one terawatt (one trillion watts) of artificial intelligence (AI) compute capacity per year. It aims to produce integrated circuits, memory modules and multi-chip ...

Guidance Up Again: Why ASML Is the AI Trade Everyone Forgets About

In March 2026, Elon Musk formally unveiled Terafab, a vertically integrated mega-fab in Austin, Texas, jointly pursued by Tesla, SpaceX and Intel, aiming to produce more than a terawatt of AI compute per year and up to 100–200 billion custom ...

Zacks Investment Ideas feature highlights: Apple, Tesla and Intel

Elon Musk unveiled TeraFab in March ... unprecedented scale. The project involves a planned $20 billion factory in Austin, Texas, designed to supply chips for Tesla vehicles and SpaceX orbital data centers....

Texas A&M's semiconductor research push fuels state's American-made production ambitions

In Grimes County, SpaceX is developing a chipmaking facility that the company has said will support its satellite and spacecraft operations, underscoring the growing demand for advanced chip technologies across multiple industries. The proposed facility, which SpaceX is calling Terafab, is still in its early stages.