TeraForce Technology (TERA) 8-K Changes in Registrant.s Certifying Accountant

Exhibit 16.1

August 9, 2005

U.S. Securities and Exchange Commission
Office of the Chief Accountant
100 F Street, NE
Washington, DC 20549

Re: TeraForce Technology Corporation

File No. 000-11630

Dear Sir or Madam:

We have read Item 4.01 of Form 8-K of TeraForce Technology Corporation dated August 9, 2005, and agree with the statements concerning our Firm contained therein.

Very truly yours,

/s/ GRANT THORNTON LLP