Terafab, the joint semiconductor manufacturing initiative by Tesla and SpaceX, has communicated to equipment suppliers a target of producing 1 million wafers per month starting in 2032, with 700,000 wafers for memory chips and 300,000 for logic chips, according to Nikkei reports cited by Wccftech. The memory capacity target would approach Samsung Electronics' current DRAM monthly output of 650,000 to 700,000 wafers. The project aims to support Tesla's Optimus humanoid robot and SpaceX's space data center requirements.
Intel and Taiwan Firms Join Technology Partnerships
Intel Corp. will assist Terafab in producing logic chips, with both parties coordinating toward adopting Intel's 2-nanometer and 1.4-nanometer process technologies, according to Nikkei. For memory manufacturing, sources indicate a concept has emerged for Taiwan companies to provide technology cooperation, though the cooperation partner and specific arrangements remain unconfirmed.
Terafab Plans $16.8 Billion Texas Semiconductor Facility
Terafab is planning a $16.8 billion investment to build a semiconductor park in Grimes County, Texas. The facility will integrate photomask production, lithography, advanced die packaging, and testing processes. The project targets reducing chip design iteration time from the current 6 to 9 months to several weeks.
Musk Discusses $1 Trillion Investment Scale at Baron Conference
Elon Musk stated at the Baron Investment Conference on November 6 that Terafab's investment scale could reach as high as $1 trillion. According to reports by 24/7 Wall St. and Benzinga, when investor Ron Baron raised the $1 trillion cost question, Musk responded that total costs could indeed reach that scale over time, but funds would not be invested all at once. The investment will proceed in phases, with the goal of integrating chip manufacturing processes to shorten the chip development and testing cycle from one year to one month.
Musk also stated that Terafab's goal is to produce AI chips with total computing power consumption reaching 1 terawatt (TW) annually, describing this as a "terrifyingly large" target. He estimated global AI chip output scale at approximately 20 to 25 gigawatts (GW) in 2026 and 35 to 45 gigawatts in 2027. He noted that 1 terawatt represents approximately 30 times the 2027 global production volume, though based on his own estimated range, the actual multiple is approximately 22 to 29 times.
Production Timeline Targets 2027 Test Chip and 2028 Mass Production
Terafab has not yet produced chips. Musk anticipates completing the first SRAM test chip in May to June 2027, with a target of launching mass production in Q3 2028, though he acknowledged the timeline is quite aggressive.
FAQ
What production capacity target has Terafab announced for 2032?
Terafab has communicated to equipment suppliers a target of producing 1 million wafers per month starting in 2032, with 700,000 wafers allocated to memory chips and 300,000 to logic chips, according to Nikkei reports.
Which companies are providing technology partnerships for Terafab?
Intel Corp. will assist with logic chip production using 2-nanometer and 1.4-nanometer process technologies. For memory manufacturing, sources indicate Taiwan companies may provide technology cooperation, though specific partners remain unconfirmed.
When does Musk expect Terafab to begin chip production?
Musk anticipates completing the first SRAM test chip in May to June 2027, with mass production targeted for Q3 2028.
