Tesla, SpaceX confirm ‘Terafab’ chip fab site — $16.8B first phase

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Tesla and SpaceX have confirmed where they’ll build Terafab, the semiconductor megafactory Elon Musk first teased in March. “Both Tesla & SpaceX will need far more chips than current & future global production can supply,” Tesla wrote, pointing to a goal of “producing over 1 terawatt of compute per year.” Both Tesla & SpaceX will need far more chips than current & future global production can supply. This is why we're building… pic.twitter.com/je4jKXuQrY — Tesla (@Tesla) August 6, 2026The pitch is vertical integration at a scale nobody has attempted. When Tesla and SpaceX first announced Terafab in March, the headline number was $25 billion.