Tesla and SpaceX Unveil $25B Terafab Chip Fabs with 2nm Process
Tesla and SpaceX will build two 2-nanometer chip fabs at Giga Texas, at a total cost of $25 billion, initially processing 100,000 wafers monthly and scaling to 1 million. These Terafab facilities aim for 80% output for orbital AI satellites and 20% for ground applications.
1. Terafab Project Details
Tesla and SpaceX will build two 2-nanometer Terafab semiconductor plants at Tesla’s Giga Texas campus, with a capital outlay of up to $25 billion. One fab will serve automotive and robotics, while the other focuses on chips for space-based AI data centers.
2. Production Capacity and Chip Types
Initial wafer starts are slated at 100,000 per month, with plans to scale to 1 million monthly starts. Terafab aims to output 80% of chips for orbital AI satellite applications and 20% for ground-based AI in vehicles and robots.
3. Strategic Capex and AI Ambitions
The $25 billion cost is not included in Tesla’s existing $20 billion capex guidance, suggesting an increase in long-term investment. The project positions Tesla to secure in-house chip capacity, reduce reliance on external suppliers, and mitigate geopolitical supply risks.