Mid-2027 target for the first chip

Elon Musk said the first test chip at the Terafab chip fab will be produced in mid-2027. That indicates the plant is not yet in mass production and will first test the process through trial runs.

Cost could exceed $100 billion

The project's cost is expected to surpass $100 billion over the long term. Chip fabs require heavy investment, long build-out times and complex supply chains, and the figure reflects the scale of the effort.

Why it matters

Terafab is part of Musk's goal of meeting his companies' chip needs with in-house production. A mid-2027 start for test production is the first concrete date suggesting the project is moving on schedule.