Tesla (TSLA) has now confirmed that Terafab, the chip manufacturing program it launched with SpaceX earlier this year, will be built in Grimes County, Texas. Billed by the two companies as the world's largest chip-making initiative, the project integrates logic chips, memory chips and advanced packaging within a single facility. In April, Tesla broke ground on a new R&D wafer fab at the north campus of its Texas Gigafactory, a site that serves as the precursor to Terafab. Combined chip demand from SpaceX and Tesla is expected to exceed 1 terawatt (TW) of computing power — a scale far beyond what the world currently produces. Tesla thanked existing chip suppliers and encouraged them to expand output where possible, but said the widening supply-demand gap is the core reason Terafab exists. The vertically integrated plant will span more than 100 million square feet and cover manufacturing, packaging and testing of advanced logic and memory chips. Co-locating those processes, Tesla said, supports rapid iteration and accelerates the deployment of new computing power.
BlockBeats, Aug. 6 — Tesla (TSLA) has confirmed that Terafab, the chip program it first unveiled with SpaceX earlier this year, will be built in Grimes County, Texas. The companies have described Terafab as the world's largest chip manufacturing plan: a single facility that brings together logic chips, memory chips and advanced packaging.
An R&D fab laid the groundwork
In April, Tesla broke ground on a new R&D wafer fab at the north campus of its Gigafactory in Texas, a project that serves as the precursor to Terafab. The company said the advanced semiconductor wafer fab now set for Grimes County is meant to close the widening gap between current global chip supply and future computing demand.
Combined demand exceeds 1 TW
Combined chip demand from SpaceX and Tesla is expected to exceed 1 terawatt (TW) of compute — a scale that dwarfs today's global supply. Tesla thanked its existing chip suppliers and encouraged them to expand capacity wherever possible, but said the ever-widening gap between future supply and demand is the core reason Terafab exists.
A vertically integrated footprint
Terafab's goal is to manufacture new computing power at unprecedented scale and speed. The plan calls for a vertically integrated plant with more than 100 million square feet of manufacturing space, covering production, packaging and testing of advanced logic and memory chips. Keeping those processes under one roof, Tesla said, enables rapid iteration and faster deployment of new compute. Source: Jin10
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