Musk stated that Terafab will consist of two semiconductor plants, requiring thousands of acres of land and over 10 gigawatts of power.

When Musk responded to a netizen's comment on X, he said, "Terafab will technically be composed of two wafer fabs, each wafer fab producing only one chip design. This greatly simplifies the process and allows FOUPs to move more linearly and closely." A netizen wrote, "The newly announced Tesla/SpaceX/XAI Terafab factory in the Texas Gigafactory covers an area of about 2 million square feet, but it is not certain how many levels or how many total square feet will be available for production." Musk responded, "No, that is just a small advanced technology manufacturing plant where we will iterate chip designs. Terafab will definitely not be built within the Texas Gigafactory complex. Its scale will far exceed the sum of all other facilities within the complex. The location for Terafab is still being considered. It will require thousands of acres of land and over 10 gigawatts of power when fully operational." Another netizen wrote, "I estimate that a factory covering 1 billion square feet will be needed." Musk said, "Yes, 1 billion square feet is a reasonable order of magnitude."