Terafab Fabs

Terafab is a vertically integrated semiconductor megaproject announced by Elon Musk in March 2026, jointly developed by Tesla, SpaceX, and Intel (using Intel's 14A process) to produce AI compute chips for Tesla vehicles/Optimus, SpaceX orbital data centers, and xAI. Tesla operates a smaller 'Advanced Technology Fabrication' R&D pilot line at the existing Gigafactory Texas site in Austin, while SpaceX operates the planned high-volume production fab at Grimes County, TX (Gibbons Creek Reservoir), targeting up to 1 million wafer starts/month at full scale. Initial investment estimated at $55B, with total project scope up to $119B. SpaceX's own SEC IPO prospectus (filed June 2026) describes only 'a general framework for the future development of Terafab' agreed with Tesla so far -- specific projects, timelines, and capital expenditures are still subject to separate, not-yet-finalized negotiations, meaning the exact corporate/ownership structure tying SpaceX, Tesla, and Intel together remains officially undetermined as of this writing.