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Terafab will use Intel's 14A fabrication process, giving Intel a major customer for its next-generation process. That's a huge win for Intel, which was considering shutting down its foundry business about a year ago if it couldn't find a major customer. SpaceX and Tesla bring in huge amounts of capital, and Intel gets a guaranteed customer.
Product: Terafab plans Category: Manufacturing / AI / robotics / infrastructure Event date: March 22, 2026 Expected launch or production date: Not specified 1-day TSLA move: +3.50% Market reaction: Bullish Main issue: Execution timeline and capital intensity ... Musk unveiled the Tesla-xAI project “Macrohard” on March 11, 2026, describing an effort to emulate software companies.
The chip fab site — referred ... with Elon Musk's March 2026 announcement of Terafab, a joint semiconductor manufacturing initiative involving Tesla, SpaceX, and xAI....
SpaceX filed plans this week for a $55 billion semiconductor factory in Texas, with potential to scale up to $119 billion. The project, called Terafab, ties Tesla, xAI, and SpaceX together with one shared goal to build the AI chips they can’t get fast enough from anyone else.
While the public notice about the potential tax abatements does not mention Terafab — a $20-plus billion joint venture of Musk’s Tesla Inc., xAI and SpaceX — by name, it describes the project as a "multi-phase, next-generation, vertically integrated semiconductor manufacturing and advanced computing fabrication facility, which would represent a transformative investment in domestic semiconductor manufacturing capacity."
Elon Musk unveiled Terafab, a Tesla (TSLA), SpaceX, and xAI venture with Intel (INTC) as manufacturing partner, targeting 1 terawatt of annual AI compute capacity.
SpaceX, Tesla, xAI, and Intel form Terafab to build US chip fabs for AI, auto, and aerospace. Two facilities, $30B investment, production by 2028.
Tesla chief Elon Musk has said the electric vehicle maker plans to use Intel’s next-generation 14A manufacturing process to make chips at its Terafab project, an advanced artificial-intelligence chip complex Musk has envisioned in Texas. Musk’s SpaceX, its xAI unit and Tesla will build two advanced chip factories at a sprawling facility in Austin, one to be used in Tesla vehicles and Optimus humanoid robots, and another designed for AI data centers in space.
The existing xAI logo will likely be phased out, and a new SpaceXAI logo, which conveniently still has the xAI letters in the name, will be designed and presented. The formation of SpaceXAI consolidates both hardware and software resources into a single entity. With the ongoing development of the $119 billion TERAFAB semiconductor fab and the new capabilities of the upcoming Starship V3, SpaceX is rapidly evolving beyond a traditional launch provider with an internet side business.
SpaceX filed a public notice in Grimes County, Texas, proposing an initial investment of **$55 billion** to build a semiconductor and advanced-computing complex called **Terafab**, according to filings and reporting by Reuters, The New York ...
On May 08, 2026, SpaceX (SPACE) announced an initial commitment of $55 billion towards its ambitious Terafab project, which could significantly benefit Intel INTC and various semiconductor equipment manufacturers including ASML (ASML), KLA (KLAC), ...
Elon Musk has announced a $55 billion semiconductor facility in Texas, led by Tesla and SpaceX, to produce chips for AI, robotics and space data centres. The Terafab project could scale to $119 billion and aims to meet massive future computing ...
Elon Musk has revealed a massive plan to build Terafab, an advanced semiconductor complex in Austin, Texas.
SpaceX submitted a public filing to construct a semiconductor manufacturing facility in Grimes County, Texas, Reuters reported Wednesday. It's the latest step forward for Musk’s new multibillion-dollar project, dubbed Terafab, which seeks ...
According to manufacturing industry reports, Elon Musk announced plans in March 2026 for two advanced semiconductor factories in Austin, Texas — a project known as Terafab — aimed at producing chips for SpaceX, Tesla, and xAI.
SpaceX files plans for $55B first phase of Terafab chip facility in Austin, Texas. Total project cost could reach $119B using Intel's 14A process.
Pilot-scale fab at Giga Texas to test chip technologies as Terafab initiative advances with SpaceX and Intel involvement
As he announced plans to local officials last month, earthmovers already were at work on a site near Gigafactory Texas that Musk said later would be a small plant focused on advanced chip design.
Coverage from Fortune and other outlets indicated the initial cost of Terafab would be in the $20 billion to $25 billion range, with the first fab rising adjacent to Tesla’s Giga Texas plant in Austin.
The figures dwarf the $20 billion originally quoted for the entire Terafab project. When you purchase through links on our site, we may earn an affiliate commission. Here’s how it works. ... SpaceX has filed a property tax abatement application in Grimes County, Texas, for a semiconductor fab that would cost $55 billion in its initial phases and up to $119 billion if all planned expansions are completed.