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Analyzing Elon Musk's TeraFab — A step towards Tesla and SpaceX's partial vertical integration, or an unattainable dream?

30 March 2026 at 19:51

Elon Musk's TeraFab has been announced, and the first employees are now being hired. But can this venture scale to all of its terawatt glory? Or will it just help Tesla, SpaceX, and xAI land additional chips they cannot get from regular partners?

Elon Musk's Terafab semiconductor project could cost $5 trillion, Bernstein claims — herculean effort would cost more than 70% of the total yearly US government budget

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By:ashilov@gmail.com (Anton Shilov)

26 March 2026 at 14:40

To build 1 TW of AI silicon per year, Elon Musk's TeraFab would need to process 22.4 million Rubin Ultra GPU wafers, 2.716 million Vera CPU wafers, and 15.824 million HBM4E wafers annually using from 142 to 358 fabs, according to Bernstein.