Structural work at Terafab’s Grimes County site appears to have begun by early September 2026, but the projected start of Terafab semiconductor production remains late 2029. The schedule puts construction, equipment installation and a production ramp between Elon Musk’s chip ambitions and volume output, expected by mid-2030.
According to Tom’s Hardware, the project’s first EUV lithography scanner is reportedly due in mid-2027, before the development fab is ready to accommodate it. The report cites Tim Culpan on delivery timing and SemiAnalysis on construction and production forecasts.
Key takeaways
- Terafab’s development-fab shell is projected to finish in late 2027.
- The planned manufacturing process is Intel’s 1.4nm-class 14A.
- Grimes phase 1 is forecast to reach volume output by mid-2030.
- SpaceX, Tesla and xAI are the likely exclusive customers.
Terafab’s construction and equipment timeline
The development fab’s shell is expected to be finished in late 2027, with tool installation beginning later that year, according to SemiAnalysis. That leaves a gap between the reported arrival of the first EUV scanner and its installation.
The planned delivery involves an ASML Twinscan NXE EUV lithography tool. The report says the scanner would sit unused for a period while the facility is completed.
At the Grimes County site, construction evidence extends beyond land clearing. Drone footage published by Joe Tegtmeyer in mid-September 2026 showed foundation excavation and rebar cage installation in the site’s northwestern area. The report interprets that footage as evidence that structural work had started by early September 2026.
Intel’s 14A technology underpins Terafab semiconductor production
Terafab plans to use Intel’s 14A manufacturing technology, a 1.4nm-class process that uses both existing Low-NA EUV scanners and next-generation High-NA EUV machines. Its projected production schedule separates the start of operations from the subsequent ramp to volume.
SemiAnalysis forecasts that Terafab Grimes phase 1 will take 20 months to build, followed by 17 months to equip and six months to ramp to volume. It projects operations beginning in late 2029 and volume output by mid-2030.
The planned EUV equipment fits the manufacturing process Terafab intends to adopt. The report notes that unconventional lithography light sources would require substantial process changes, equipment qualification and potentially different photomasks and photoresists, complicating the transfer of Intel’s technology.
How the schedule compares with Tesla, Intel and TSMC
Intel’s planned 14A production schedule precedes Terafab’s volume ramp, while TSMC targets late 2029 for its smaller-node A12 process. These roadmaps place Terafab’s expected output after Intel’s initial high-volume manufacturing milestone.
Intel plans risk production for 14A in the second half of 2027 and high-volume manufacturing in the second half of 2028, if its schedule holds. TSMC intends to begin volume manufacturing on its 1.2nm-class A12 process in late 2029.
A12 includes second-generation nanosheet GAA transistors and backside power delivery. The report also places Intel close to unveiling its 14A-P node around that time, meaning Terafab’s planned process would not be the most advanced available at its production start.
Tesla’s research fab on Giga Texas’s north campus near Austin provides another construction benchmark. The report says groundbreaking took place in April; SemiAnalysis projects 15 months to complete the building and another six months to install equipment. Wafer-processing experiments would then prepare the team for Terafab’s volume-fab phase 1.
In-house output for SpaceX, Tesla and xAI
Terafab semiconductor production is expected to serve SpaceX, Tesla and xAI, likely exclusively.
SpaceX reportedly ordered semiconductor-manufacturing equipment in April 2026, several months before publicly identifying the location. The report links those early orders and equipment lead times to its forecast for volume-fab equipment installation in mid-2028.
SpaceX selected Grimes County for Terafab in early August 2026.
Article produced with the assistance of artificial intelligence and reviewed by the editorial team.