Terafab

| name = Terafab

| name = Terafab

| image = Terafab logo.svg

| image = Terafab logo.svg

| alt =

| caption = Official logo

| caption = Official logo

| coordinates =

| location =

| industry = [[Semiconductor industry]]

| industry = [[Semiconductor industry]]

| products = [[Hardware for artificial intelligence|Artificial intelligence hardware]]

| products = [[Hardware for artificial intelligence|Artificial intelligence hardware]]

| address =

| owner = {{plainlist|

| owner = {{plainlist|

* [[Tesla, Inc.|Tesla]]

* [[Tesla, Inc.|Tesla]]

| website = {{official website|https://www.terafab.ai}}

| website = {{official website|https://www.terafab.ai}}

}}

}}

'''Terafab''' is a planned [[semiconductor fabrication plant]] jointly developed by [[Tesla, Inc.|Tesla]], [[xAI (company)|xAI]], xAI's parent company [[SpaceX]], and [[Intel]].{{cite news |title=Why Tesla's Terafab Might Be Elon Musk's Biggest Challenge Yet |url=https://www.businessinsider.com/tesla-terafab-chip-factory-launch-elon-musk-biggest-challenge-2026-3 |work=Business Insider |date=21 March 2026}}{{cite news |title=SpaceX Terafab announcement |url=https://x.com/i/broadcasts/1yKAPMzlvgWxb |publisher=[[SpaceX]] |date=21 March 2026}} The venture was announced by [[Elon Musk]] on 21 March 2026 and centers on the construction of a [[vertically integrated]] large-scale facility designed to produce more than one [[terawatt]] (one trillion watts) of [[Hardware for artificial intelligence|artificial intelligence (AI) compute]] capacity per year. It aims to consolidate every stage of the [[semiconductor device]] production process, including [[Integrated circuit design|chip design]], [[semiconductor device fabrication|fabrication]] (including [[Photolithography|lithography]]), [[Semiconductor memory|memory]] production, [[Advanced packaging (semiconductors)|advanced packaging]], and testing to produce [[integrated circuit]]s, [[memory module]]s and [[multi-chip module]]s under one roof.

'''Terafab''' is a planned [[semiconductor fabrication plant]] jointly developed by [[Tesla, Inc.|Tesla]], [[xAI (company)|xAI]], xAI's parent company [[SpaceX]], and [[Intel]].{{cite news |title=Why Tesla's Terafab Might Be Elon Musk's Biggest Challenge Yet |url=https://www.businessinsider.com/tesla-terafab-chip-factory-launch-elon-musk-biggest-challenge-2026-3 |work=Business Insider |date=21 March 2026}}{{cite news |title=SpaceX Terafab announcement |url=https://x.com/i/broadcasts/1yKAPMzlvgWxb |publisher=[[SpaceX]] |date=21 March 2026}} The venture was announced by [[Elon Musk]] on 21 March 2026 and centers on the construction of a [[vertically integrated]] large-scale facility designed to produce more than one [[terawatt]] (one trillion watts) of [[Hardware for artificial intelligence|artificial intelligence (AI) compute]] capacity per year. It aims to consolidate every stage of the [[semiconductor device]] production process, including [[Integrated circuit design|chip design]], [[semiconductor device fabrication|fabrication]] (including [[Photolithography|lithography]]), [[Semiconductor memory|memory]] production, [[Advanced packaging (semiconductors)|advanced packaging]], and testing to produce [[integrated circuit]]s, [[memory module]]s and [[multi-chip module]]s under one roof.

Initial prototype fab operations are to be focused in [[Austin, Texas]], with a total cost expected in the range of {{USD|20-25 billion}}.{{cite news |title=SpaceX Terafab announcement |url=https://x.com/i/broadcasts/1yKAPMzlvgWxb |publisher=[[SpaceX]] |date=21 March 2026}}{{cite news |title=Why Tesla's Terafab Might Be Elon Musk's Biggest Challenge Yet |url=https://www.businessinsider.com/tesla-terafab-chip-factory-launch-elon-musk-biggest-challenge-2026-3 |work=Business Insider |date=21 March 2026}} The full-scale Terafab is to be built at a yet to be determined location. Analysts estimate the costs for the full-scale facility at around {{USD|5 trillion}}.{{cite web |last1=Sophia |first1=Deborah Mary |title=Intel joins Musk's Terafab AI chip project to power humanoid, data center goals |url=https://www.reuters.com/business/autos-transportation/intel-join-musks-terafab-mega-ai-chip-project-2026-04-07/ |publisher=[[Reuters]] |access-date=8 April 2026 |date=7 April 2026}}

Initial prototype fab operations are to be focused in [[Austin, Texas]], with a total cost expected in the range of {{USD|20-25 billion}}.{{cite news |title=SpaceX Terafab announcement |url=https://x.com/i/broadcasts/1yKAPMzlvgWxb |publisher=[[SpaceX]] |date=21 March 2026}}{{cite news |title=Why Tesla's Terafab Might Be Elon Musk's Biggest Challenge Yet |url=https://www.businessinsider.com/tesla-terafab-chip-factory-launch-elon-musk-biggest-challenge-2026-3 |work=Business Insider |date=21 March 2026}} The full-scale Terafab is to be built at a yet to be determined location. Analysts estimate the costs for the full-scale facility at around {{USD|5 trillion}}.{{cite web |last1=Sophia |first1=Deborah Mary |title=Intel joins Musk's Terafab AI chip project to power humanoid, data center goals |url=https://www.reuters.com/business/autos-transportation/intel-join-musks-terafab-mega-ai-chip-project-2026-04-07/ |publisher=[[Reuters]] |access-date=8 April 2026 |date=7 April 2026}}

== Background ==

== Background ==

[[File:Tesla UBQ01B0 FSD Chip - 20240121 (cropped).jpg|thumb|AI chips for [[Tesla Autopilot]] are among the products planned for manufacture at Terafab.]]

[[File:Tesla UBQ01B0 FSD Chip - 20240121 (cropped).jpg|thumb|upright=1.05|AI chips for [[Tesla Autopilot]] are among the products planned for manufacture at Terafab.]]

The project was first teased by Musk in early 2026 and officially announced on 21 March 2026 during a special event at the defunct [[Seaholm Power Plant]] in Austin, Texas.{{cite news |last=Lambert |first=Fred |title=Tesla and SpaceX announce $25B ‘Terafab’ chip factory — here’s why it reeks of desperation |url=https://electrek.co/2026/03/22/tesla-spacex-terafab-chip-factory-ai-desperation/ |work=Electrek |date=22 March 2026 |access-date=22 March 2026}} Musk described Terafab as a pivotal step toward humanity becoming a [[galactic civilization]], with the announcement accompanied by a live SpaceX broadcast on [[X (social network)|X]] and conceptual imagery of prototype 100 kW "AI Mini Sat." He went on to describe that the global chip industry [[Chip shortage|cannot expand quickly enough]] to meet the demand that Tesla will need for "edge inference compute" for [[List of Tesla vehicles|Tesla vehicle]] and [[Optimus (robot)|Optimus humanoid robot]] production, nor for the special semiconductor characteristics required for [[orbital AI infrastructure]]. Musk claimed all the current fabrication facilities on Earth produce only about 2% of what Tesla and SpaceX will need across all projects, saying "We either build the Terafab, or we don't have the chips, and we need the chips, so we build the Terafab."{{cite news |title=Elon Musk unveils $20 billion ‘TeraFab’ chip project to make chips, memory, and package processors all under one roof — targets a terawatt of annual compute |url=https://www.tomshardware.com/tech-industry/elon-musk-formally-launches-20-billion-terafab-chip-project |work=[[Tom's Hardware]] |date=22 March 2026 |access-date=22 March 2026}} The project integrates efforts under the SpaceX/xAI umbrella with Tesla's existing silicon development.

The project was first teased by Musk in early 2026 and officially announced on 21 March 2026 during a special event at the defunct [[Seaholm Power Plant]] in Austin, Texas.{{cite news |last=Lambert |first=Fred |title=Tesla and SpaceX announce $25B ‘Terafab’ chip factory — here’s why it reeks of desperation |url=https://electrek.co/2026/03/22/tesla-spacex-terafab-chip-factory-ai-desperation/ |work=Electrek |date=22 March 2026 |access-date=22 March 2026}} Musk described Terafab as a pivotal step toward humanity becoming a [[galactic civilization]], with the announcement accompanied by a live SpaceX broadcast on [[X (social network)|X]] and conceptual imagery of prototype 100 kW "AI Mini Sat." He went on to describe that the global chip industry [[Chip shortage|cannot expand quickly enough]] to meet the demand that Tesla will need for "edge inference compute" for [[List of Tesla vehicles|Tesla vehicle]] and [[Optimus (robot)|Optimus humanoid robot]] production, nor for the special semiconductor characteristics required for [[orbital AI infrastructure]]. Musk claimed all the current fabrication facilities on Earth produce only about 2% of what Tesla and SpaceX will need across all projects, saying "We either build the Terafab, or we don't have the chips, and we need the chips, so we build the Terafab."{{cite news |title=Elon Musk unveils $20 billion ‘TeraFab’ chip project to make chips, memory, and package processors all under one roof — targets a terawatt of annual compute |url=https://www.tomshardware.com/tech-industry/elon-musk-formally-launches-20-billion-terafab-chip-project |work=[[Tom's Hardware]] |date=22 March 2026 |access-date=22 March 2026}} The project integrates efforts under the SpaceX/xAI umbrella with Tesla's existing silicon development.

== Prototype fabrication facility ==

== Prototype fabrication facility ==

Tesla plans to build a prototype "Advanced Technology Fabrication" facility at the existing Tesla [[Gigafactory Texas|GigaTexas]] site that will be fully capable of doing each of the parts of chip manufacturing in a single facility in order to iterate rapidly—"make a chip, test it, revise the [[photomask|mask]], and repeat without shipping wafers between sites"—a capability that does not currently exist in any other chip fab site globally. The aim is to manufacture chips for both AI edge inference and for AI model training with chips optimized for operation in [[Outer space|space]].

Tesla plans to build a prototype "Advanced Technology Fabrication" facility at the existing Tesla [[Gigafactory Texas|GigaTexas]] site that will be capable of producing each of the parts of chip manufacturing in one facility in order to iterate rapidly—"make a chip, test it, revise the [[photomask|mask]], and repeat without shipping wafers between sites"—a capability that does not currently exist in any other chip fab site globally. The aim is to manufacture chips for both AI edge inference and for AI model training with chips optimized for operation in [[Outer space|space]].

The project targets [[2 nm process|2-nanometer process]] technology and an initial output of 100,000 [[Wafer (electronics)|wafer]] starts per month. Tesla's fifth-generation AI chip, [[Tesla Autopilot hardware#Hardware_5|AI5]], is among the first products the pilot facility will be designed to produce, with small-batch production anticipated in 2026 and volume production in 2027.{{cite web |last1=Mazza |first1=Rosalia |title=Tesla Terafab Project: Elon Musk Confirms Launch in Seven Days |url=https://www.fintechweekly.com/news/tesla-terafab-project-launch-ai-chip-fab-musk-march-2026 |website=Fintech Weekly |access-date=24 March 2026 |date=14 March 2026}}

The project targets [[2 nm process|2-nanometer process]] technology and an initial output of 100,000 [[Wafer (electronics)|wafer]] starts per month. Tesla's fifth-generation AI chip, [[Tesla Autopilot hardware#Hardware_5|AI5]], is among the first products the pilot facility will be designed to produce, with small-batch production anticipated in 2026 and volume production in 2027.{{cite web |last1=Mazza |first1=Rosalia |title=Tesla Terafab Project: Elon Musk Confirms Launch in Seven Days |url=https://www.fintechweekly.com/news/tesla-terafab-project-launch-ai-chip-fab-musk-march-2026 |website=Fintech Weekly |access-date=24 March 2026 |date=14 March 2026}}