Musk’s massive Terafab project will get final location soon

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.

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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

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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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Ex-Blue Origin workers say theirs are worthless.Exclusive: Elon Musk plans to pitch SpaceX's Terafab chip moonshot to employees at Europe's biggest tech companyThis tech exec sued Tesla over its Full Self-Driving promises — and wonExclusive: Stellantis CEO tells employees to channel Silicon Valley office culture as it prepares for 5-day RTOExclusive: The chip industry's most important company is cutting managers.

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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.

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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.

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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 ...

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📌 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 ...

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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.

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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.

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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 ...

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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.

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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.