Tracking the buildout of Tesla's $20–25 billion semiconductor fabrication facility — custom AI chips, memory, and advanced packaging for FSD, Optimus, and Dojo. Now built on Intel 14A.
Key milestones tracking Terafab's progress from announcement to production.
Tesla's Q1 2026 10-Q quietly reveals an acquisition of an unnamed AI hardware company for up to $2.00B in Tesla stock and equity awards — approximately $1.8B is contingent on technology deployment milestones. Target name not disclosed.
Source →Tesla officially breaks ground on the $3B Terafab research fab on the Giga Texas North Campus — the first physical construction of the project. The R&D facility seeds the broader 5.2M+ sq ft expansion targeting two side-by-side fabs (Tesla vehicles + xAI/SpaceX orbital chips).
Source →On Tesla's Q1 2026 earnings call, Musk confirms Terafab will use Intel's 14A (1.4nm) process, making Tesla Intel's first major external 14A customer. Musk: "By the time Terafab scales up, 14A will probably be ready for prime time." Tesla also raises 2026 capex guidance to ~$25B (Terafab's $20–25B is separate and additional).
Source →Musk on X: "Congrats to the Tesla AI chip design team on taping out AI5! AI6, Dojo3 & other exciting chips in work." AI5 volume production pushed to mid-2027; AI6 slips to Q4 2027 due to Samsung 2nm yield issues. First AI5 deployments go to Optimus and internal supercomputers; Q2 2026 Cybercab still ships on AI4.5.
Source →Intel formally joins the Terafab project (Tesla, SpaceX, xAI) as foundry partner — contributing process technology, packaging expertise, and manufacturing scale to help "refactor" chip-fab technology. Intel stock +2.9% on the day. Specific process node not yet specified at this announcement.
Source →Tesla files Travis County site plans for 5.2M+ sq ft of new building space at Giga Texas North Campus — including a 2M sq ft Terafab R&D facility, plus an "ecological paradise" eco-park: 25 mi trails, 8 wildlife corridors, 290 acres preserved waterfront. Phased buildout estimated at $5–10B in construction spend through 2026.
Source →Elon Musk officially launches TERAFAB at the historic Seaholm Power Plant in Austin, TX. Joint $20-25B venture between Tesla, SpaceX, and xAI. Targeting 2nm process, 100-200B chips/year. AI5 chip: 40-50x more compute than AI4.
AI5 chip detailed at launch: 40-50x more compute than AI4, 9x more memory. Small-batch production expected in 2026, volume production mid-2027. Dual-sourced from TSMC (Arizona) and Samsung (Taylor, TX).
Samsung confirmed as key manufacturing partner for Tesla's 2nm chips. Production to pivot to Texas facility near 2027.
Elon Musk posts the countdown on X, igniting global media coverage. Tesla begins large-scale hiring in both Palo Alto (chip design) and Austin (factory construction).
Tesla's AI6 chip delayed approximately 6 months due to Samsung's 2nm production line slip, pushing mass production into late 2027.
TrendForce reports Tesla weighing doubling AI6 output. AI6 chip contract worth $17B through 2033.
New construction permits filed for large-scale expansion east of the current Giga Texas facility. Drone footage shows major site prep underway.
Tesla Q4 2025 earnings call reveals Terafab will integrate logic, memory, and advanced packaging under one roof. Musk: "We either build the Terafab or we don't have the chips."
Elon Musk posts on X: "Terafab is needed." First public use of the Terafab name.
Elon Musk first proposes the Tesla Terafab concept — a chip fab larger than a Gigafactory — citing the need for massive AI chip volume.
Tesla's Q1 2026 10-Q reveals an acquisition of an unnamed AI hardware company worth up to $2.00B in Tesla stock and equity awards — approximately $1.8B contingent on successful technology deployment milestones. Target company name not disclosed.
Critical take: Musk is betting Tesla's AI chip future on a process node (Intel 14A) that hasn't yet entered high-volume manufacturing. Tesla and Intel both have execution risk — but if it works, it's a lifeline for Intel Foundry.
Intel CEO Lip-Bu Tan endorses the Terafab partnership during Intel's Q1 2026 earnings call: "We are excited to explore innovative ways to refactor silicon process technology." The Terafab deal anchors Intel Foundry's 14A roadmap with a marquee external customer.
TrendForce reports Tesla locks in as Intel's first major 14A foundry customer for Terafab — a high-profile design-win that could validate Intel's most advanced node and reshape AI-chip supply dynamics.
On Tesla's Q1 2026 earnings call, Musk confirmed: "Given that by the time Terafab scales up, 14A will probably be fairly mature... 14A seems like the right move, and we have a great relationship with Intel." Intel shares rose 3.6% in extended trading.