Terafab AI Chip Megafactory

planned

Terafab is a vertically integrated semiconductor megafactory project announced by Elon Musk, aiming to produce over 1 terawatt of AI compute capacity annually. The facility consolidates chip design, lithography, fabrication, memory production, advanced packaging, and testing under one roof. It targets producing 100-200 billion custom AI and memory chips annually to support Tesla, SpaceX, xAI, and Intel's AI and robotics ambitions. The pilot facility is planned for the North Campus of Giga Texas in Austin, with an estimated investment of $20-25 billion. Initial operations will use advanced 2-nanometer process technology, scaling from 100,000 wafer starts per month to 1 million. Intel joined the venture in April 2026 to provide manufacturing expertise. The project is designed with space applications in mind, envisioning orbital AI compute powered by solar energy.