Terafab is Elon Musk's plan to build one of the world's largest chip-making complexes. Tesla TSLA and SpaceX SPCX have committed an initial $16.8 billion to the project, which is planned for Grimes County, TX, and would cover more than 100 million square feet.The vertically integrated facility is designed to handle chip manufacturing, packaging, and testing all under one roof. Terafab is expected to start manufacturing chips by 2029. Musk estimates that Tesla and SpaceX will need over one terawatt of AI computing power every year, far more than today's global chip output can supply. The chips will mostly be built for edge computing and inference.
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