As mid-August rolls around, Tesla unveiled a major advancement in its AI layout: Terafab, its ultra-large-scale AI chip manufacturing project, has been officially confirmed for Grimes County, Texas. Construction on the project quietly kicked off back in April this year, situated within the chip R&D campus north of Tesla’s Texas Gigafactory—a pivotal milestone in Tesla’s full-stack self-reliance strategy. Per the blueprint, the manufacturing space of the entire R&D campus spans over 100 million square feet, equivalent to nearly 9.3 million square meters, representing an astonishing scale.

Unlike traditional semiconductor foundries, Terafab will integrate end-to-end manufacturing of advanced logic and memory chips within a single campus, alongside packaging and testing processes. Its target annual output exceeds 1 terawatt of computing power. The chips produced will first supply Tesla’s Optimus humanoid robots and Cybercab autonomous taxis, while also delivering high-power semiconductors for SpaceX’s space data centers. In essence, the facility will underpin the core computing demands of both Tesla and SpaceX.