Elon Musk Announces Chip Manufacturing Plans for SpaceX and Tesla

Elon Musk unveiled plans for a new chip-manufacturing facility, dubbed “Terafab,” to serve both Tesla and SpaceX. The facility is expected to be built near Tesla’s Austin headquarters and gigafactory. Musk emphasized the project’s necessity, citing current semiconductor manufacturers’ inability to meet the AI and robotics demands of his companies: “We either build the Terafab or we don’t have the chips, and we need the chips, so we build the Terafab.” The goal is to produce chips capable of supporting 100–200 gigawatts of computing power per year on Earth, and up to a terawatt in space. While Musk has no formal background in semiconductor manufacturing, he has a track record of ambitious goals and ambitious timelines, though specific dates for the project’s completion were not provided.