Tesla and SpaceX’s Terafab Chip Project Reportedly Targets 1 Million Wafers a Month by 2032

Terafab, the semiconductor project from Tesla and SpaceX, is reportedly targeting capacity of 1 million wafers a month from 2032, split between memory and logic chips, according to Nikkei. The project has presented procurement plans to Japanese equipment makers as it prepares to begin operations.

The report landed as Tesla shares slipped nearly 1% overnight heading into Monday, after CEO Elon Musk outlined plans to free Cybertruck factory capacity for Cybercab expansion. The stock had jumped 4% to $358.22 on Monday after sliding 10% the previous week — its worst weekly decline since July — as Musk also outlined a future 40 kWh Cybercab battery pack and a liquid silver version of the robotaxi.

Terafab is the clearest sign yet that Musk wants to control the silicon under his cars, robots and rockets rather than buy it. A million wafers a month would be an enormous build-out by any standard, and the 2032 date shows how long the runway is: this is a decade-scale bet, not a product announcement.

For now there is no confirmed fab location, no published budget and no production date. What is confirmed is the direction of travel — Tesla and SpaceX are jointly developing the chip plant, and both companies are converging on AI and autonomous systems as their core business.