Elon Musk Begins Construction of Advanced Technology Chip Fab in Texas

Construction of the Advanced Technology Chip Fab (ATCF) research center is progressing rapidly in Texas, USA. The facility is designed to develop future semiconductor technologies. Recent aerial footage of the large site has appeared online, reports ixbt.com. Ixbt.com reports .

The video and photos published by blogger Joe Tegtmeyer, who regularly covers construction of Giga Texas and the Starbase spaceport, reveal the future complex’s clear outline. Foundation work is currently underway, construction materials are being delivered, and preparations for the next phase are in progress.

Major Investments and Partnerships

According to reports, the ATCF project was officially unveiled on March 21, 2026. Activity at the construction site has increased sharply in recent days, as confirmed by permits issued for the construction of four new temporary buildings to house contractors and Tesla’s temporary offices.

The complex is the first stage of Elon Musk’s ambitious Terafab project, which aims to create his own AI chips. According to media reports, Tesla, SpaceX, xAI, and Intel will join forces to build the semiconductor complex.

Future Technologies and Artificial Intelligence

The first phase of the project is estimated to cost approximately $55 billion. Once operating at full capacity, total investment is expected to reach $119 billion, making it one of the largest industrial initiatives ever undertaken.

The ATCF center is planned to combine logic chips, memory, and advanced chip-packaging technologies in a single production cycle. The AI accelerators manufactured there will be used in Tesla electric vehicles, robotaxis, Optimus humanoid robots, and AI data centers.

Earlier, ASML CEO Christophe Fouquet confirmed that he had held talks with Elon Musk about building one of the world’s largest semiconductor manufacturing centers. Creating this infrastructure will be crucial for supplying future space and terrestrial projects with high-performance chips.