A semiconductor fab announced by Elon Musk in March 2026 that is designed to supply his companies with custom AI chips. Tesla self-driving cars and Optimus robots as well as SpaceX satellite networks are expected to use Terafab-designed processors and memory.
The plant is expected near the Gigafactory in Austin, Texas, Tesla's global headquarters and manufacturing hub. Musk plans to build more than a million wafers monthly within a year or two. However, considering the scope of this project and the limited supply of state-of-the-art ASML machines, pundits speculate that Terafab may choose chiplet construction. Memory and controller chiplets might be built inhouse while the most advanced GPU chiplets are farmed out. Terafab would then package the chiplets for deployment. See
Gigafactory Texas and
MCM.
The A15 Chip
Terafab's first chip, the two-nanometer A15, is expected to be up to 50 times faster than the Tesla A14 that Samsung began shipping in 2023.
Needless to Say
Musk's goals have often been ridiculed while he manages to do the impossible such as making the first rockets that are reusable. Stay tuned!