Drone footage confirms rapid progress at Elon Musk's Advanced Technology Chip Fab (ATCF) in Texas, preparing for integrated logic-memory-packaging.

Drone flyovers of Elon Musk's Advanced Technology Chip Fab (ATCF) in Texas reveal brisk construction progress at the site. The videos and photos were shared by Joe Tegtmeyer, a flight instructor and drone videographer who regularly documents Giga Texas and Starbase projects. Since the fab was only announced on March 21, 2026, groundwork has accelerated, with Tegtmeyer noting that progress has "hit another gear."

In his initial post from July 22, Tegtmeyer observed that the ATCF facility "already appears to be very well defined." He noted that "GeoPiers are at work on the part of the foundation that has had gravel mix placed on the top soil and more work grading on the south end."

By July 27, Tegtmeyer reported further acceleration. The foundation was taking clearer shape and expanding southward, with construction materials continuing to be stockpiled. Notably, "4 new permits were filed in the past few days for the large trailer complex that houses the general contractors and the temporary Tesla offices for the new facility," Tegtmeyer wrote. He characterized this as "a great sign that things are progressing rapidly behind the scenes to fit out the facility when construction progresses far enough to allow for equipment installation."

Tegtmeyer emphasized an important distinction: the ATCF is not the Terafab being developed approximately 100 miles east in Grimes County. Rather, the ATCF is a "smaller development facility that is the first part of the overall AI Chip development program."

As a joint Tesla–SpaceX facility, the ATCF is a keystone for accelerator chips destined to support Tesla vehicles and Robotaxis, Optimus robots, and upcoming Earth-orbiting AI data centers. Chips produced at the ATCF will combine logic, memory, and advanced packaging capabilities under one roof.

This differs markedly from the larger Terafab megaproject—a multi-phase, vertically integrated facility targeting 1 terawatt of annual production. The Terafab represents a collaboration among Tesla, SpaceX, xAI, and Intel with massive AI computing ambitions for both terrestrial and space-based systems. That project remains in pre-construction phases pending further development.

Underscoring Musk's seriousness about semiconductor ambitions, ASML CEO Christophe Fouquet recently confirmed direct talks with Musk about establishing one of the largest chip manufacturing operations ever attempted. SpaceX has already filed for a $55 billion facility in Grimes County, with potential expansion costs reaching $119 billion, and phase one potentially beginning before year-end. The rapid progress of the smaller ATCF demonstrates momentum across Musk's chipmaking initiatives.