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Musk says SpaceX and Tesla to build advanced chip factories in Austin

Terafab aims to produce one terawatt of AI computing power annually, exceeding global chip supply limits, supporting Tesla vehicles, Optimus robots, and space-based AI satellites.

  • At a Seaholm event, Musk unveiled the Terafab, describing it as a comprehensive chip facility with integrated R&D, testing, and packaging, saying 'To the best of my knowledge, this doesn’t exist anywhere in the world'.
  • Last week Musk teased the Terafab project, saying it will integrate Tesla, SpaceX and xAI to accelerate autonomy and AGI, with space-based solar-powered AI satellites lowering compute costs.
  • The facility’s closed-loop design includes on-site photomask manufacturing, wafer fabrication, testing, and packaging, aiming for initial operational capability late 2026.
  • One immediate outcome is a chip for Tesla vehicles and Optimus, with production volumes expected to exceed car output and a space-optimized D3 chip for satellites ramping in 2027.
  • Positioned at scale, the project aims to produce ~1 terawatt yearly, with roughly 80% for space and 20% for ground, while Musk proposed an industrial base on the moon and free trips to Saturn.
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The project is necessary to cover a future shortage of advanced chips capable of feeding artificial intelligence applications, including robots and robots.

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Elon Musk returned to surprise the technological world with an ad. By concreteizing, he will change the rules of the game in the semiconductor sector. In a presentation in Austin, the leader of Tesla and SpaceX revealed...

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The companies SpaceX and Tesla, led by Elon Musk, want to build two state-of-the-art chip factories in Austin, Texas. Musk announced the project called "Terafab" on its online platform X on Sunday. One plant is to produce semiconductors for cars and humanoid robots, the other is intended for data centers with artificial intelligence in space. "Terafab will technically consist of two factories, each of which produces only one chip design," Musk w…

·Vienna, Austria
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thewatchtowers.org broke the news in on Friday, March 20, 2026.
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