Key facts
- SpaceX and Tesla will invest an initial $16.8 billion in the Terafab AI chip manufacturing complex.
- The facility will be located in Grimes County, Texas.
- Terafab aims to produce integrated circuits, memory modules, and multi-chip modules.
- The project is a collaboration between Tesla, SpaceX, and Intel.
- Tesla is building a prototype fab at Giga Texas as a precursor to Terafab.
SpaceX and Tesla are set to invest an initial $16.8 billion to construct Terafab, an advanced artificial intelligence chip manufacturing complex in Grimes County, Texas. The venture, announced by Elon Musk, aims to address the significant demand for computing power anticipated by both companies in the coming years.
Terafab is designed as a vertically integrated facility capable of handling every stage of chip production, from design to fabrication, memory production, advanced packaging, and testing. This consolidation is intended to bridge the gap between current global chip supply and the projected needs of SpaceX and Tesla, which together are expected to require over 1 terawatt of computing power.
Intel has announced its participation in the project, contributing manufacturing expertise and utilizing its 14A manufacturing process. Tesla is also developing a prototype fabrication facility at its Giga Texas site as a precursor to the full-scale Terafab complex. This prototype will focus on rapid iteration of chip design and manufacturing, with targets for 2-nanometer process technology and an initial output of 100,000 wafer starts per month.