Elon Musk has announced plans for a chip-building collaboration between Tesla and SpaceX, dubbed “Terafab,” to address the inadequate semiconductor supply for their artificial intelligence and robotics requirements.
The initiative aims to produce chips supporting 100 to 200 gigawatts of computing power annually for terrestrial use and a terawatt for space applications, with the facility expected to be located near Tesla’s Austin, Texas headquarters and gigafactory.
Musk stated that the project is necessary because current semiconductor manufacturers are not producing chips at the required speed, saying “We either build the Terafab or we don’t have the chips, and we need the chips, so we build the Terafab,” according to Bloomberg.
No timeline for these plans was provided by Musk, who, as reported by Bloomberg, lacks a background in semiconductor manufacturing.




