Musk says SpaceX and Tesla to build advanced chip factories in Austin
CEO Elon Musk announced "Terafab," a future AI chip factory complex that SpaceX and Tesla will build in Austin, Texas.
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CEO Elon Musk announced "Terafab," a future AI chip factory complex that SpaceX and Tesla will build in Austin, Texas.
CEO Elon Musk announced "Terafab," a future AI chip factory complex that SpaceX and Tesla will build in Austin, Texas.
Elon Musk announced that his proposed “Terafab” chip factory will be built in Austin and operated jointly by Tesla and SpaceX, according to Yahoo Finance and Bloomberg.
Electric cars, reusable rockets, massive data centers, robots — all considered insanely difficult challenges that his businesses have (at least partially) pulled off. But Musk’s ambitious Terafab chip manufacturing project might end up being ...
Elon Musk has announced plans for the “Terafab,” a chip manufacturing facility near Tesla’s Austin headquarters that he claims will be the largest of its kind in the world.
Samsung’s new plant near Taylor is seen in October. By 2028, it’s expected to encompass about 8 million square feet. Elon Musk said a new Tesla/SpaceX chip fabrication plant would be 12 times that.Aaron E. Martinez/Austin American-Statesman · Musk’s plans, if achieved, would exceed that. He shared a comparison of Terafab to Gigafactory Texas, noting Terafab will be “one hell of a building!” Analysts have estimated the project could cost at least $20 billion.
560 votes, 247 comments. Tesla and SpaceX announced 'Terafab,' <strong>a $25 billion chip fab in Austin targeting 1 terawatt of compute</strong>. It's Battery Day on…
Musk’s Terafab plan ties Tesla, ... but the biggest factory may not end up in Austin. ... Elon Musk has unveiled a new chip manufacturing effort in Texas that ties together Tesla, SpaceX, and xAI under a project he calls Terafab. The plan starts in Austin with what Musk described as an “advanced technology fab” built to make and test many kinds of chips. He said the broader push is aimed at supporting growing demand for semiconductors tied to robotics, ...
On March 21–22, 2026, Elon Musk announced something extraordinary: Tesla, in partnership with SpaceX and Musk’s AI venture xAI, is launching Terafab — a massive semiconductor fabrication project in Austin, Texas.
"Despite its groundbreaking potential, the Terafab project is anticipated to face a host of challenges that will test both its operational and economic viability. Industry skeptics have noted Elon Musk’s lack of prior experience in semiconductor fabrication—a field rife with its own unique set of complexities and competitive barriers. Concerns also orbit around market dynamics, including the potential bottleneck posed by ASML’s limited supply of EUV lithography equipment, crucial for the en
These chips will: ... Support SpaceX missions and satellite systemsMusk plans to use these chips for a larger idea — an orbital data center, backed by a proposal to launch up to one million satellites.
Nvidia’s pricing power over the AI industry depends on there being no credible alternative at the leading edge. If Terafab delivers even a fraction of its stated capacity, the economics of AI compute change permanently.
The facility is projected to create thousands of high‑tech jobs in the Austin area, potentially boosting local economies and positioning the region as a technological hub akin to Silicon Valley.
Elon Musk recently outlined ambitious plans for a chip-building collaboration between his companies Tesla and SpaceX. Bloomberg reports that Musk shared his plans on Saturday night at an event in downtown Austin, Texas, with a photo suggesting that what Musk is calling the “Terafab” facility will be built near Tesla’s Austin headquarters and “gigafactory.”
Musk said that the upcoming project, Terafab, will be a joint venture between his companies: Tesla, SpaceX and xAI. The facility's goal is to produce semiconductor chips to be used in robotics, artificial intelligence and space-based projects.
Musk is now extending that same playbook into semiconductors. According to a report from Reuters, Tesla, SpaceX, and xAI are collaborating on Terafab, a proposed $20 to $25 billion chip complex at the North Campus of Giga Texas in Austin.
Blue Origin Joins the Race for Orbital Data Centers With 51K Satellite Plan · Still, Musk said his company is currently missing the large-scale capacity to manufacture the AI chips needed for the satellites. Hence, his presentation was mainly focused on building a new factory, dubbed the "Terafab," to produce cutting-edge processors, including GPUs and memory chips, for SpaceX and his EV company, Tesla, which is also developing humanoid robots.
For Europe and Spain, this movement ... the well-known "Chips Act", with the aim of increasing its share of global production and reducing dependence on Asia and the United States....
For Europe and Spain, this movement ... the well-known "Chips Act", with the aim of increasing its share of global production and reducing dependence on Asia and the United States....
The Terafab <strong>aims for 2-nanometer (2nm) process technology</strong>. For context, TSMC—the world leader—has spent 35 years and hundreds of billions of dollars to reach this level.