Tesla and SpaceX are building an experimental semiconductor fabrication plant in Texas as part of their joint Terafab project. Estimated at $3 billion, the facility at Tesla’s Giga Texas campus in Austin is intended to rapidly prototype new chips before mass production. A much larger production site is planned in Grimes County, with an initial investment of $16.8 billion, more than 100 million square feet of operational space and at least 3,000 jobs. Terafab is expected to supply chips for Tesla vehicles, the Optimus humanoid robot and Cybercabs, while also providing artificial intelligence hardware for SpaceX’s planned space-based data centers. Intel joined the project as a manufacturing partner targeting its 14A process, while the long-term goal of one terawatt of annual computing capacity remains highly ambitious.
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