Terafab
A planned semiconductor fabrication plant by Elon Musk's companies to produce advanced AI chips for terrestrial and space applications.
About
Terafab is a planned semiconductor fabrication plant, a joint venture between Tesla, SpaceX, and xAI, announced by Elon Musk. The ambitious project aims to consolidate all stages of chip production, from design to fabrication and packaging, under one roof. It is intended to produce advanced AI chips for both terrestrial applications, such as Tesla's Full Self-Driving systems and Optimus robots, and for space-based applications, including orbital data centers and satellites.
Listed competitors
Terafab's focus on proprietary AI chips for Musk's ecosystem, including space applications, differentiates it from Samsung's broader semiconductor offerings.
Terafab aims to produce its own AI chips, potentially offering higher performance at lower costs for specific workloads compared to Nvidia's general-purpose GPUs.
While Intel is a partner, Terafab's ultimate goal of in-house fabrication for specific AI workloads, particularly for space, sets it apart from Intel's foundry services.
Terafab aims for a vertically integrated model, consolidating all production stages in-house, which differs from TSMC's foundry model.
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Key facts
- Headquarters
- Austin, United States
- Founded
- 2026
- Business model
- B2B
Frequently asked
What does Terafab do?
The facility targets 2-nanometer process technology and aims for a massive annual compute capacity.
Public record
SEC filings, insider activity, nonprofit links and pay benchmarks for Terafab

