
Last updated: October 13, 2026. TeraFab has two Texas locations in public reporting: a smaller Tesla research fab near Giga Texas in the Austin area and a planned 100-million-square-foot production complex in Grimes County near the Gibbons Creek Reservoir. This page tracks verified milestones and separates visible construction activity from proposed dates and long-term targets.
Current status: Development and early construction. Tesla has begun a research facility, and aerial reporting published September 29 showed land clearing at the Grimes County site. SpaceX and Tesla have announced an initial $16.8 billion investment, but no large-scale commercial TeraFab chip production has been verified. On October 7, Musk said SpaceX and Tesla would build and run the fab; TSMC might sublease part of it, while Intel said it remained involved.
Tesla began work on a semiconductor research facility at the North Campus of Giga Texas. The Austin-area facility is intended to test ideas, processes and small-batch production. Musk previously described capacity of a few thousand wafers per month.
The announced large-scale TeraFab complex is in Grimes County, Texas, near the Gibbons Creek Reservoir. Reuters reported that the facility is planned to make, package and test advanced logic and memory chips. Water for industrial operations is expected to come from the reservoir rather than local groundwater.
The locations serve different functions. The research fab is intended to learn and qualify. The Grimes County complex is intended to scale.
| Date | Milestone | What it means |
|---|---|---|
| March 2026 | Elon Musk announced the TeraFab program involving Tesla, SpaceX and xAI. | The project moved from earlier hints to a named public initiative. |
| April 2026 | Intel announced participation. Musk said TeraFab planned to use Intel 14A. | The program gained a process-technology and manufacturing partner. |
| April 2026 | Tesla began work on a research facility near Giga Texas. | The smaller learning phase started before the full-scale complex. |
| May 2026 | A project filing described $55 billion in initial investment and as much as $119 billion with later phases. | The potential scope became clearer, but these figures did not represent completed spending. |
| June 2026 | Grimes County approved a reinvestment zone and tax abatement reported by local and national media. | The proposed site advanced through a local economic-development step. |
| August 6, 2026 | SpaceX and Tesla announced an initial $16.8 billion investment in the Grimes County plant. | The companies identified the first-phase commitment, site, jobs and manufacturing scope. |
| September 2026 | A trademark dispute involving the TeraFab name was reported. | The name faces a legal issue; the dispute does not itself establish whether construction can continue. |
| September 29, 2026 | Local aerial reporting showed extensive clearing and burn piles at the Grimes County site. | The project had moved beyond announcements into visible site preparation, but clearing is not equivalent to a completed fab or qualified production line. |
| October 7, 2026 | Musk said SpaceX and Tesla would build and operate TeraFab. He said TSMC might sublease part of the complex, while Intel’s CEO said Intel remained involved. | This clarified operational control after speculation about a larger TSMC role. It did not disclose final contracts, ownership percentages or production dates. |
These are announced plans. Readers should not describe the jobs as filled, the full footprint as constructed or the chips as shipping until evidence supports those statements.
The research fab is a precursor rather than a miniature copy of the full vision. It can help engineers test process integration, tool configurations, packaging and design feedback. Research output can also reveal whether the proposed Intel 14A route and product designs are practical.
The most important research-fab milestones would be installed equipment, first test wafers, process qualification, yield data and a named chip entering product validation.
No single dependable date applies to the entire program. A research line can begin experimental work before the full production complex is built. The Grimes County site is also planned in phases.
Forecasts should distinguish:
A groundbreaking or completed building is not the same as qualified semiconductor production.
The Grimes County plan is large enough to make utilities central to the schedule. Semiconductor equipment requires dependable power, cleanroom cooling, specialty gases and ultra-pure water. Packaging and testing add further infrastructure.
Key documents to monitor include water agreements, discharge permits, air permits, power-interconnection filings, construction permits and tax-abatement performance requirements. These records provide stronger evidence of progress than promotional renderings.
For a technical explanation, see TeraFab size, capacity and power needs.
In September 2026, Tom’s Hardware reported that Tera-Print had challenged the TeraFab name, arguing that it had used the Tera-Fab brand for lithography tools for years. The report said the parties had discussed settlement and that a lawsuit was being pursued.
This is a naming and trademark issue, not proof that the semiconductor plan has failed. Possible outcomes could include a settlement, coexistence, licensing or rebranding. Until court records or company statements resolve it, the dispute should be described as pending.
| Confirmed or reported event | Projection or goal |
|---|---|
| TeraFab was publicly announced. | One terawatt of annual compute output. |
| Intel announced participation. | A complete 100-million-square-foot build-out. |
| Tesla began an Austin-area research facility. | One billion Optimus robots in the wider vision. |
| A Grimes County site and $16.8 billion initial investment were announced. | Future phases reaching as much as $119 billion. |
| At least 3,000 jobs were projected. | Stable high-volume production and economic yield. |
The research fab is near Austin at Giga Texas. The announced large-scale production complex is in Grimes County.
Yes, at an early stage. Tesla began work on the Austin-area research facility, and aerial reporting published September 29 showed active land clearing at the Grimes County site. That verifies site preparation, not completed cleanrooms, installed semiconductor tools or commercial production.
No reliable large-scale shipment date has been established publicly.
A trademark dispute has been reported, but no final outcome has been established.
Material updates will be added with their date, source and an explanation of whether they are confirmed events or projections.
For the full background, read what TeraFab is and how it works.







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