Tesla and SpaceX will locate Terafab in Grimes County, Texas. The project is a
vertically integrated advanced wafer fab covering advanced logic, memory,
packaging and test, with planned manufacturing area of more than 100 million sq
ft. Tesla and SpaceX forecast combined chip demand exceeding 1 terawatt (TW) of
compute, a scale they say outstrips current global supply. Terafab is intended
to close the widening supply-demand gap and speed deployment by co-locating
manufacturing, packaging and testing. Tesla began construction in April on an
R&D wafer fab at its Texas Gigafactory north campus as a precursor and urged
existing chip suppliers to expand capacity where feasible.
