Terafab, a semiconductor venture backed by Tesla, SpaceX, and xAI, is building a supply chain by engaging with South Korean equipment manufacturers. Representatives from the project met with approximately 10 Korean firms during the SEMICON West event held from October 13 to 15, 2026, resulting in multiple non-disclosure agreements.
The company aims to establish a domestic manufacturing operation in the United States with a production capacity of 1 million wafers per month within the next 10 years. Current supply chain efforts focus on advanced materials and components required for semiconductor fabrication.
Specific partnerships are already underway. HPSP is providing a high-pressure hydrogen annealing system for the project's research and development line, while Hanmi Semiconductor has secured orders for advanced packaging equipment.
The project's primary facility is located at Tesla's Giga Texas in Austin, where prototype work began earlier in 2026. A larger plant is planned for the former Gibbons Creek site in Grimes County, with the first phase estimated to cost $16,8 billion.
Terafab is also collaborating with Intel, which became a strategic development partner in April 2026 to assist with design and fabrication using 14A process technology. The initiative seeks to create a self-sufficient supply chain to support the needs of xAI, Tesla, and SpaceX.
