Elon Musk reveals SpaceX performed secret Starship test on Flight 13
Tesla Terafab set for launch: Inside the $20B AI chip factory that will reshape the auto industry
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Tesla Terafab set for launch: Inside the $20B AI chip factory that will reshape the auto industry
Elon Musk’s massive Terafab project, which will be the first true conglomeration between each of his major entities, is set to get its final location soon, the CEO said on Tesla’s recent earnings call.
In the last earnings call, Tan said that the company remained “focused on the long-term objective of building a world-class wafer and advanced packaging foundry,” although it would take time. Advertisement|Remove ads. The company has, however, begun shipping its first products built on Intel 18A, its own semiconductor manufacturing process, and Intel Foundry also met key 18A and 14A milestones in the previous quarter. Moreover, under the new deal for the Terafab initiative, a semiconductor facil
Nvidia, Tesla and Hitachi are engaging with Intel across foundry trials, custom AI chips and industrial AI, while the planned Terafab project with SpaceX and Tesla targets 14A-based AI chip production at very large scale by 2027.
Tesla’s share count rose by roughly ... Tesla’s characterisation of 2026 as its biggest investment year yet across AI compute, its Austin chip fab, and the Terafab semiconductor project....
They expressed doubt about the company’s more ambitious bets — orbital data centers, the Terafab chip project, and a lunar economy — and flagged as an operational warning that SpaceX has already begun turning away Falcon 9 customers for launches after 2028 and stopped accepting new ...
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He noted that Tesla was struggling to ramp up production due to the newness of parts and the lack of an existing supply chain. That parts problem feeds a still larger ambition: TeraFab, Tesla's plan to build its own semiconductor plant combining logic, memory and advanced packaging under one roof — a project Nvidia's chief executive has said will be difficult to pull off.
Buoyed by its accelerating growth, Intel raised its 2026 capital expenditure budget from $18 billion to $20 billion and forecast elevated spending through 2027 to outfit its advanced manufacturing facilities. Tan has since secured multibillion-dollar investments from Nvidia and SoftBank, and announced plans to work with Elon Musk on his “Terafab” manufacturing project, all while pursuing company-wide cuts.
Terafab was announced by Musk back in March and was essentially a massive, vertically integrated semiconductor manufacturing project that would provide all the chips the three companies needed for their AI initiatives without needing third-party ...
Optimus, chips and the widening bet The spending extends well beyond robotaxis. Tesla is pursuing Terafab, a chip manufacturing project shared with SpaceX and xAI, which Musk described as a dependency for Optimus.
Tesla and SpaceX CEO Elon Musk claims he will build a $20 billion ‘TeraFab’ semiconductor plant to make chips for space data centers, advanced vehicles, and humanoid robots.
📌 UPDATE — July 26, 2026 Construction of the Terafab joint venture chip fabrication facility at Giga Texas is now officially underway. Four new building permits have been issued specifically for the Advanced Technology Chip Fabrication ...
The AI1 reference design, with a peak power of 150kW, can accommodate 72 of the most advanced AI chips made by Nvidia (equivalent to a single server rack in a terrestrial data centre). But other chips could also be used, and SpaceX plans to start manufacturing its own at a giant factory called Terafab.
However, there was no true indication of where Terafab would end up, but most believe it will likely be somewhere in Texas. Business Insider has reported that SpaceX plans to build out Terafab in Grimes County, Texas, but this is unconfirmed.
Ultimately, these moves help strengthen ... against Samsung. Jukan has discussed a joint venture, and going by the original Korean source, this fab would shift entirely to memory production. Setting aside the severe hit to Intel’s own capacity, unless they are banking on TeraFab 14A lines ...
(NYSE:TSM) and Samsung, as chip and memory supply becomes a growing bottleneck for Tesla’s AI ambitions. The remarks came as Musk outlined Tesla’s Terafab project, a proposed facility to consolidate chip logic, memory, and packaging development for Optimus.
Musk unveiled Terafab in March as a fully integrated chip project that would bring design, fabrication, and advanced packaging under one roof, targeting more than 1 terawatt of AI computing capacity a year.
Elon Musk’s massive Terafab project, which will be the first true conglomeration between each of his major entities, is set to get its final location soon, the CEO said on Tesla’s recent earnings call.
However, there was no true indication of where Terafab would end up, but most believe it will likely be somewhere in Texas. Business Insider has reported that SpaceX plans to build out Terafab in Grimes County, Texas, but this is unconfirmed.