Tesla has announced Terafab, described as the largest chip manufacturing facility ever, in collaboration with SpaceX and xAI. The facility aims to produce 1TW of chips per year to support ambitious projects like solar-powered satellites and millions of Optimus robots. Elon Musk stated it requires thousands of acres and over 10GW of power.
On March 22, 2026, Tesla posted on X announcing 'TERAFAB: the next step to becoming a galactic civilization.' The company, together with @SpaceX and @xAI, plans to build the largest chip manufacturing facility ever, capable of 1TW/year, combining logic, memory, and advanced packaging under one roof. A linked broadcast elaborated on the announcement. Tesla post and follow-up. Tesla explained the need stems from sending '100 million tons of solar capture into space – per year' to harness solar power, requiring launches of millions of tons into orbit, solar-powered AI satellites, and 'millions of @Tesla_Optimus robots to help build it out.' Chip demand includes '100-200GW of chips for Optimus alone, plus terawatts for solar-powered AI satellites,' exceeding current global production and projections to 2030. Elon Musk replied to a post estimating a 2 million sq ft footprint at Giga Texas, clarifying: 'No, that’s just the little advanced technology fab, where we will be iterating on chip designs. We couldn’t possibly fit the Terafab on the GigaTexas campus. It will be far bigger than everything else combined there. Several locations for Terafab are under consideration. It needs thousands of acres and over 10GW of power at full scale.' Elon Musk post. Sawyer Merritt noted Musk's comment that '100 million sqft is the right order of magnitude,' comparing it to 3 New York Central Parks, 10 Tesla Giga Texas buildings, and other landmarks. Sawyer Merritt post.
