Do you think TeraFab looks like a graphics card or a memory stick?
Below is the storyline summarized by grok: the first-principles mentor, Musk Benk, comes to teach you a lesson.
2025
November 6: At Tesla’s annual shareholders meeting, Musk first publicly introduced the concept of “TeraFab,” saying that current foundry capacity is far from enough to support demands such as AI and Optimus, and that it may be necessary to build a super fab in-house.
2026
January 28: During Tesla’s earnings call, Musk clearly stated that it is necessary to build a Terafab; otherwise, in the next 3–4 years, the world will face a severe chip shortage, and he also mentioned geo-political risk protection.
March 14: Musk posts on X previewing, “Terafab Project launches in 7 days”.
Mid-to-late March: Start large-scale hiring (jobs in places like Palo Alto, Austin in the US roll out one after another).
March 21: Official launch event (Seaholm Power Plant in Austin). Musk, along with Tesla, SpaceX, and xAI, formally kicks off the Terafab project. The goal is vertically integrated logic chips, memory, and advanced packaging, with an estimated annual AI compute capacity of about 1 terawatt. The official website, terafab.ai, goes live at the same time.
April: Tesla breaks ground in the north area of Giga Texas for a prototype/research wafer fab (Advanced Technology Fab), serving as a precursor to the full-scale factory and a pilot production base.
April 7: Intel officially announces its participation, providing advanced process support (e.g., 14A) and manufacturing expertise.
Mid-April (around the 16th–17th): Launch hiring in Taiwan, focusing on attracting experienced engineers with advanced process knowledge, CoWoS, and similar expertise (mainly targeting talent such as that from TSMC).
Around April: Reach out to Samsung regarding equipment and collaboration intentions. Samsung proposes expanding existing fabs as an alternative (not officially joining).
June: Gary Jiang (Intel, 17 years of senior manufacturing experience; previously a factory manager, responsible for 18A transfer and mass production) joins as Terafab Director, the first publicly announced core executive hire.
June 6–11: ASML invites Musk to a closed-door technical meeting (virtual attendance). The two sides exchange in depth on topics such as EUV lithography equipment supply (no informal equity/partner parties added).
July 15: In its financial report, ASML confirms that it has included Terafab demand in its 2027–2028 capacity planning (deepening the relationship as an important potential customer/supplier).
August 6: SpaceX/Tesla officially confirms the site selection for the full-scale factory in Grimes County, Texas. Initial investment for Phase 1 is about $16.8 billion. At the same time, it releases factory demonstration/rendering videos. Musk estimates capacity allocation roughly as: Tesla (mainly Optimus) about 25% + SpaceX (AI spacecraft/space data centers) about 75%.
I’m Elon Musk’s die-hard fan, and I also think SpaceX is my space dream. I just want to see Starship on the Moon, and go to Mars. 🤪