Tesla, SpaceX, and xAI say that Terafab will be the largest chip manufacturing facility ever, outputting 1TW a year of compute power and “combining logic, memory and advanced packaging under one roof.”
Intel’s ability to “design, fabricate, and package ultra-high-performance chips at scale” will help accelerate those 1TW/year ambitions, the company said in its X post. The Santa Clara-headquartered tech giant hosted the world’s richest man over the Easter weekend, and CEO Lip-Bu Tan lauded Musk’s “proven track record of reimagining entire industries.”
“This is exactly what is needed in semiconductor manufacturing today,” Tan wrote in a separate X post. “Terafab represents a step change in how silicon logic, memory and packaging will get built in the future.”
The advanced chip center is targeting 2-nanometer process (2nm) technology, the most advanced chip generation technology in commercial production. It is designed for an initial output of 100,000 raw silicon wafers a month, with a goal to scale to one million wafer starts per month at full capacity.
Musk’s ambitions are to ultimately produce between 100 billion and 200 billion custom AI and memory chips a year. During the unveiling event, the near-trillionaire said that Terafab will create an “incredibly fast recursive loop” to improve chip development.
The partnership comes as Intel pushes further into advanced chip packaging, where multiple chiplets, or smaller components, are combined onto a single custom chip. Tan has called this a “very big differentiator” for Intel.
