Elon Musk has announced plans for a massive semiconductor manufacturing complex in Texas, stating that the projected output of the facility could rank among the top 20 economies by GDP. The project, dubbed Terafab, is a joint initiative between Tesla and SpaceX.
Musk shared the ambitious projection on his social media platform X, describing the facility as a "massive structure." He is actively recruiting for the project, which aims to combine logic, memory, and advanced packaging under one roof.
Tesla and SpaceX announced Terafab earlier this year. According to SpaceX, the combined chip demand from the two companies exceeds 1 terawatt of compute annually. The facility is designed to supply chips for Tesla’s Optimus robots and self-driving Cybercabs, as well as processors for SpaceX’s planned orbital data centers.
Intel Corp. has joined the project to contribute design, fabrication, and packaging expertise. SpaceX reports that the facility will eventually span more than 100 million square feet. Musk has estimated that roughly 75% of the eventual AI compute capacity will be allocated to SpaceX spacecraft, with the remaining 25% going to Tesla’s Optimus robots.
Texas Gov. Greg Abbott’s office reports that the first phase of the project represents an investment of more than $16.8 billion and the creation of 3,000 jobs. The state also awarded SpaceX a $30 million grant through the Texas Enterprise Fund.
Speaking at the X Takeover event outside Tesla’s Austin gigafactory, Musk acknowledged that he currently lacks experience in chip manufacturing. He stated that visits to competitors' facilities revealed relatively little customized equipment, an area where his companies have deep experience. Musk estimated that mastering the technology might take "quite a few years." SpaceX states that Terafab will vertically integrate manufacturing, packaging, and testing to shorten iteration cycles.
Reuters recently reported that Tesla and SpaceX will build and operate the complex, while Intel will continue to work with the project. TSMC is also reportedly a potential lessee of part of the site.
