Terafab
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Terafab is a semiconductor fabrication project jointly developed by Tesla and SpaceX, centering 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, encompassing advanced logic chips, memory modules, and packaging technologies. The venture was announced by Elon Musk on 21 March 2026, and was described as the final piece in enabling massive-scale AI infrastructure. The project integrates efforts under the SpaceX/xAI umbrella with Tesla's existing silicon development. Initial operations are to be focused in Austin, Texas.[1][2]
Musk described Terafab as a pivotal step toward humanity becoming a galactic civilization, with the announcement accompanied by a live SpaceX broadcast on X and conceptual imagery of prototype 100 kW "AI Mini Sat."[2]
Prototype fabrication facility
Tesla plans to build an advanced technology fabrication facility at the existing Tesla GigaTexas site that will be fully capable of doing each of the parts of chip manufacturing in a single facility in order to iterate on and test new chips very rapidly. The aim is to manufacture chips for both AI edge inference and for AI model training with chips optimized for operation in space.