Terafab

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 modules under one roof by consolidating every stage of the semiconductor device production process, including chip design, fabrication, memory production, advanced packaging, and testing.

Initial prototype fab operations are to be focused in Austin, Texas, in proximity to Tesla's existing Gigafactory Texas. County filings in May 2026 discussed an initial outlay of about US$55 billion and as much as $119 billion across all phases of the Grimes County facility. In August 2026 Tesla and SpaceX said they would invest about $16.8 billion in a first phase at that site.