Tesla Plans World’s Largest Chip Facility in Texas, Targeting Over 1 Terawatt of Annual AI Compute

On August 6, Tesla announced plans to build a chip manufacturing facility called "Terafab" in Grimes County, Texas, USA. The company stated that it had already begun construction of a pilot chip fabrication plant in the northern section of its Texas Gigafactory this past April, which will serve as the foundational phase for Terafab. Tesla noted that its future chip demand—alongside that of SpaceX—will exceed both current and projected global chip production capacity, prompting its plan to build "the largest chip manufacturing facility ever," with a target annual output exceeding 1 terawatt of computing power.