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Terafab is a planned semiconductor fabrication plant jointly developed by Tesla, xAI, xAI's parent company SpaceX, and Intel.[1][2] 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 artificial intelligence (AI) compute capacity per year. It aims to consolidate every stage of the semiconductor device production process, including chip design, fabrication (including lithography), memory production, advanced packaging, and testing to produce integrated circuits, memory modules and multi-chip modules under one roof.
Initial prototype fab operations are to be focused in Austin, Texas, with a total cost expected in the range of US$20−25 billion.[3][2][1][4] 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 US$5 trillion.[5]
