# Elon Musk’s Terafab Targets Massive Semiconductor Output by 2032 Terafab aims for one million wafers monthly, challenging global memory chip production leaders. - **Source:** [Tom's Hardware](https://www.tomshardware.com) - **Published:** 2026-11-10 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/494f02bd-310b-4471-9cbe-b0cfb1a7c071 ## Ambitious Production Targets Terafab, a joint venture between Tesla and SpaceX, has signaled plans to produce one million wafers per month after 2032. This output is split between 700,000 memory wafers and 300,000 logic chips. The scale of this ambition aims to rival established industry giants like Samsung and SK hynix in total capacity. ## Aggressive Procurement Strategy Procurement teams have actively visited Japan and SEMICON West to engage with equipment and materials suppliers. Some vendors have been requested to deliver essential manufacturing tools within just a few months. These actions indicate a rapid push to secure supply chains despite the project's complex and highly demanding technical requirements. ## Memory Market Implications The planned 700,000 memory wafers could include DRAM or NAND flash technologies. While specific product splits remain undisclosed, the volume is significant, potentially reaching 3.5 times the capacity of SK hynix’s Wuxi facility. Terafab is currently exploring partnerships with Taiwanese firms to provide the necessary technical expertise for this production. ## Logic Chip Development For logic chip production, Terafab is reportedly collaborating with Intel to utilize advanced 2nm and 1.4nm process technologies. This strategy highlights a dual-track approach, focusing on both high-performance logic and high-volume memory. However, the company has yet to clarify its exact manufacturing process for the majority of its memory output. ## Technical Workforce Requirements Recent job listings for a Memory Process Integration Engineer reveal a focus on end-to-end DRAM development. The roles also encompass emerging memory technologies such as MRAM, RRAM, and 3D DRAM. These postings suggest that Terafab is building internal capabilities for complex chip stacking and advanced memory architectures from the ground up. ## Timeline and Execution Risks Elon Musk has acknowledged that the 2028 volume production target is highly aggressive, placing significant error bars on the schedule. Industry experts remain skeptical, noting that leading-edge fabs typically require three or more years for development. The first SRAM test chip is currently slated for production in mid-2027 in Austin. ## Investment and Infrastructure The first phase of the project in Grimes County, Texas, involves a substantial $16.8 billion investment. If subsequent phases proceed as planned, total capital expenditure could reach $119 billion. A pilot plant is expected to be completed by July 2027, serving as a critical testing ground for the company's manufacturing processes. ## Strategic Industry Positioning Terafab represents a bold attempt at vertical integration for Tesla and SpaceX, despite their lack of prior chip-manufacturing experience. The potential role of TSMC remains uncertain, as Musk insists on operating the facilities independently. This project could fundamentally alter the semiconductor landscape if the company successfully navigates these immense operational challenges. ## Sources covering this story - https://www.tomshardware.com/tech-industry/semiconductors/elon-musks-terafab-targets-1-million-wafers-a-month-after-2032-planned-700-000-monthly-memory-wafers-could-rival-samsungs-entire-estimated-dram-production-capacity — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._