# Elon Musk is building a $25 billion chip megafactory in Austin, Texas.

*semiconductor · news · 2026-04-07 · TechStartups.com*

## Key points

- Intel has joined Elon Musk's $25 billion Terafab chip megafactory project in Austin.
- Terafab aims to integrate chip design, fabrication, packaging, and testing within a single facility.
- The facility targets producing one terawatt per year of compute for AI and robotics applications.
- Early chip output will focus on Tesla's AI5 chips and specialized versions for SpaceX's orbital needs.
- Terafab plans to produce tens of billions of AI inference and memory chips annually at full capacity.

**Companies:** Intel, Tesla, SpaceX, xAI
**Countries:** United States

[Read the full story on TechStartups.com](https://techstartups.com/2026/04/07/intel-joins-elon-musks-25b-terafab-ai-chip-megafactory-project/)

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