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That sequencing, building Musk’s Tesla ownership to its highest point ever immediately before SpaceX gains the public currency needed to acquire it, is either an extraordinary coincidence or a carefully staged foundation for the largest corporate merger in history. Elon Musk’s TERAFAB project: Everything you need to know
The semiconductor giant also announced it has commenced manufacturing using its 18A-P chip process technology. Should this prove successful, the advanced node could potentially secure foundry business from Apple. Additionally, Elon Musk’s Terafab initiative has been identified as an Intel foundry customer.
SpaceX has a role in Elon's Terafab project, a chip manufacturing initiative with a goal of producing one terawatt of compute hardware each year. Tesla, SpaceX and xAI operate the joint venture.
Intel has also verified that production has commenced on its 18A-P chip node. Should this manufacturing process prove successful, it could potentially secure foundry contracts from Apple. Additionally, Elon Musk’s Terafab initiative has been identified as an Intel foundry customer.
The companies are also collaborating on Terafab, a $55 billion chip-building megafactory designed to produce chips for SpaceX’s orbital data centers as well as Tesla’s robotaxis and robots.
Signed multiple long-term agreements including Google (multi-year, volume/pricing LTAs), partnership with SambaNova for heterogeneous inference architectures, and broad collaboration with SpaceX/xAI/Tesla on TeraFab initiatives—enhancing market credibility and demand visibility.
The sheer scale needed is so massive that SpaceX, Tesla and Intel have partnered to create Terafab, a 10-million-square-foot facility being built in Austin and slated to open in 2029 and which could cost up to $119 billion to build.
On the night of March 21, 2026, Musk posted to X: “Formal announcement of the TERAFAB project, which will be done jointly by SpaceX and Tesla,…
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Full video link: https://members.ffgrv.com/post/remote-viewing-terafab-inside-elon-musks-classified-ai-chip-facility?utm_source=youtube&utm_medium=organic&ut...
Trump also cited other foundry commitments in the same post: Nvidia agreed to build chips with Intel, and Elon Musk committed to Terafab — a chip manufacturing complex being built in Austin, Texas, as a joint venture between Tesla, SpaceX, and xAI, planned to use Intel's 14A process node.
So it’s hard not to read Megapod as another attempt to attach the Tesla story to the AI trade. We’ve seen the pattern: Dojo, then Dojo’s death, then Dojo3, then “space-based AI compute,” then the Terafab chip fab that we called desperate.
Not surprising. Tesla is its 5th generation (AI5) processor, currently manufactured by Samsung and TSMC. I suppose they imagine there are others that will want to use these for their own purposes. Musk is creating his own supply of chips for SpaceX at his TX Terafab.
Tan also discussed the Terafab wafer fab project with Elon Musk and Jensen Huang's $5 billion commitment to support the transformation. A concurrent JPMorgan report noted that the advanced packaging market is moving from a TSMC CoWoS monopoly toward a duopoly, with Intel's EMIB emerging as a credible second source, though its wafer manufacturing capabilities still lag behind TSMC.
Jensen Huang announces an Nvidia processor like the world has never seen before According to Nvidia CEO Jensen Huang, the new chip that... Honor MagicPad 4 is the thinnest Android tablet in the world Honor has introduced a new version of its already extremely... Intel is joining Musk’s Terafab AI chip factory project The Terafab project is getting a significant boost as Intel...
ASML Holding NV Chief Executive Officer Christophe Fouquet said the chip equipment maker has to make sure it doesn’t experience supply constraints when servicing new projects such as Elon Musk’s Terafab. At the 2026 IEEE/JSAP VLSI Symposium, imec, ASML and TSMC demonstrated complementary 2D-material transistors (MoS₂ and WSe₂) at a 50nm contacted poly pitch on a 300mm wafer. That’s a world first. Using a single EUV exposure to print 28nm channels, 94% of the transistors switched correctly, marki
Intel Corporation(INTC.US) CEO Lip-Bu Tan aims for 10x returns within 5-10 years by focusing on advanced packaging, glass substrates, and new materials such as synthetic diamonds. He highlighted AI-driven growth in CPU demand and emphasized trust and yield in its chip foundry business. Collaborating with Elon Musk on the Terafab project, Chen believes Intel Corporation(INTC.US)’s true potential will emerge post-2030, extending beyond PCs into AI and edge computing markets.
In terms of resource and business cooperation, the two companies have long shared core assets, including engineering talent, and are currently co-developing a chip-manufacturing project named Terafab.