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Elon Musk's Terafab chip factory in Texas could cost up to $119 billion, filing shows
Elon Musk's giant Terafab facility in Texas could cost up to $119 billion, with hopes of manufacturing chips for Tesla, SpaceX and xAI
TL;DR
- The first phase of Elon Musk's Terafab chip plant in Texas is estimated to cost at least $55 billion, with the full buildout potentially reaching $119 billion.
- SpaceX is seeking property tax abatements from Grimes County, Texas, for the prospective facility.
- The Terafab aims to combine logic, memory, and advanced packaging under one roof for SpaceX, xAI, and Tesla.
- Intel has announced it will join the Terafab project to design, fabricate, and package ultra-high-performance chips.
- Tesla plans to use Intel's forthcoming 14A process for chips produced at the facility.
- The project aims to control the chip supply chain due to difficulties in securing priority at TSMC.
- A separate research fab is planned at Tesla's Austin factory, costing around $3 billion.
- SpaceX will manage the initial phase of the scaled-up Terafab.
- SpaceX is preparing for a public offering after a recent merger with xAI.