Reuters reported on October 20 that Elon Musk put Terafab’s target for large-scale chip production in the third quarter of 2028. Musk described the third or fourth quarter as possible scenarios and said the schedule had a wide margin of error. That makes 2028 an ambitious target, not a firm production date.
Terafab’s two reported milestones
The production goal is separate from an earlier development target: a functional test chip based on SRAM, or static random-access memory. Reuters reported that Terafab had set an internal goal to produce that chip at its Austin research facilities in May or June 2027.
| Reported milestone | Target timing | Scope |
| Functional SRAM test chip | May or June 2027, an internal goal | Development milestone at Terafab’s Austin research facilities |
| Large-scale chip production | Q3 2028 target; Q3 or Q4 were described as possible scenarios | Production at the planned Terafab facility |
What the planned Texas facility would do
Terafab is a chip-manufacturing project created by SpaceX and Tesla. The planned Texas complex would bring together advanced logic and memory manufacturing, packaging and testing. Musk also described an ambition of one terawatt per year of computing capacity for AI and robotics. That figure is a project goal, not a report of achieved output.
Tesla’s earlier announcement gives a broader view of the project’s stated purpose. The company described Terafab as involving Tesla, SpaceX and xAI, and tied its rationale to chip demand for AI, robotics and solar-powered AI satellites in space.
Equipment deliveries and possible partners
Musk thanked ASML and other suppliers for accelerating equipment deliveries. When asked whether Terafab had ordered EUV machines, he did not directly answer. EUV, or extreme ultraviolet, lithography is a chipmaking technology. NeoTeo previously covered the reported mid-2027 delivery target for Terafab’s first ASML EUV scanner.
Reuters also reported that Intel had announced it would join Terafab. Musk acknowledged discussions about possible cooperation with TSMC, then said Terafab intended to operate its own plant.
