Musk: Tesla to Build World's Largest Chip Fab, Aiming for Over 1 Terawatt of Annual Compute

elonmusk · x · 2026-08-06

Elon Musk announced that Tesla will build a massive chip manufacturing facility named Terafab in Grimes County, Texas. This follows the breaking of ground on a research fab at the North Campus of Giga Texas earlier in April.

Musk emphasized that both Tesla and SpaceX will require far more chips than current and future global production can supply. To solve this, the new facility aims to be the largest chip manufacturing plant ever built, with the ambitious goal of producing over 1 terawatt of compute per year.

Related event: Musk Announces Terafab: The World's Largest Chip Manufacturing Facility(5 posts)→

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