Elon Musk to start building Terafab project this week

Elon Musk has said he will start building a fab in the next seven days. In a very brief announcement on X, he wrote: “Terafab Project launches in 7 days.” He’s starting small and hoping to end big.

“We make a little fab and see what happens – make our mistakes at a small scale – and then we make a big one,” said Musk at the weekend.

By a big one, he means one million wafers a month and Elon Musk to start building Terafabhe wants to get there by 2030.

By comparison TSMC’s total capacity was 1.3 million 12-inch equivalent wpm last year and is expected to be 1.5 million wpm this year.



The price for what Musk calls his Terafab is $20-25bn. Tesla currently has $44bn in cash.

At Tesla’s last AGM, Musk said the Terafab was necessary because: “I can’t see any other way to get to the volume of chips that we’re looking for.”

Musk already has a fab deal with Samsung and has talked about a possible manufacturing hook-up with Intel.

See all our Manufacturing content.

David Manners

David Manners

David Manners has more than forty-years experience writing about the electronics industry, its major trends and leading players. As well as writing business, components and research news, he is the author of the site's most popular blog, Mannerisms. This features series of posts such as Fables, Markets, Shenanigans, and Memory Lanes, across a wide range of topics.

Leave a Reply

Your email address will not be published. Required fields are marked *

*