Terafab

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Terafab is a planned semiconductor fabrication plant being developed by Tesla and SpaceX, with participation from Intel. The venture was announced by Elon Musk on March 21, 2026, and centers on the construction of a vertically integrated large-scale facility with a long-term goal of producing one terawatt (one trillion watts) of artificial intelligence (AI) compute hardware per year. It aims to produce integrated circuits, memory modules and multi-chip modules under one roof by consolidating every stage of the semiconductor device production process, including chip design, fabrication, memory production, advanced packaging, and testing. Initial prototype fab operations are to be focused in Austin, Texas, in proximity to Tesla's existing Gigafactory Texas, with a permanent plant planned for Grimes County, Texas, on the site of a former electric generating plant. County filings in May 2026 estimated capital investment of US$55 billion for the initial phases and as much as $119 billion if...

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