Tesla & SpaceX’s Terafab plan

Elon Musk formally unveiled “Terafab” at an event on March 21, 2026 held inside Austin’s decommissioned Seaholm Power Plant and described the initiative as a joint venture between Tesla, SpaceX and xAI. (teslarati.com) Public statements put the build cost in the roughly $20–25 billion range, cite a target 2‑nanometre process node, and list production ambitions of about 100–200 billion chips per year with an ultimate goal framed as “one terawatt” of compute. (forbes.com) Musk said the complex will contain two distinct fabs—an “advanced technology fab” for general AI/inference silicon and a separate line for space‑hardened, higher‑temperature chips—and indicated the site will sit on or adjacent to Tesla’s Giga Texas campus in Travis County. (tomshardware.com) Tesla’s capital‑expenditure plan for 2026 already exceeds $20 billion, company finance commentary reportedly acknowledged Terafab’s full costs aren’t fully folded into that guidance, and several analysts have flagged a heightened probability of a cash‑raise to fund the program. (fintechweekly.com) Market commentators pointed out that only a very small set of foundries—TSMC, Samsung and possibly Intel—have recent experience at the bleeding‑edge nodes Musk targets, noting Samsung’s nearby Taylor, Texas project has itself topped $25 billion as an example of real‑world scale and cost escalation. (msn.com) Multiple industry outlets emphasized that Musk’s “launch” marks project kickoff and design commitments rather than an operational 2nm production line, with no firm mass‑production timeline disclosed and analysts reminding readers that long lead times for EUV tools, cleanrooms and wafer‑ramp phases routinely stretch multi‑year schedules. (forbes.com)